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WORKS MANAGEMENT LIBRARY 



INSTALLING 
EFFICIENCY METHODS 



BY 



C E. KNOEPPEL 




NEW YORK 
THE ENGINEERING MAGAZINE 

1915 



I 



T 58 

Kg 



Copyright, 1915 
By The Engineering Magazine Company 



JAN -5 1915 



CI.A393150 



INTRODUCTION 

IN this book Mr. Knoeppel undertakes not the mere declaration of principles, but 
the exact definition of practice. He does not explain why greater efficiency should 
be sought in industrial plants; that has been ably argued already. He describes what 
the actual methods are that increase the efficiency of a manufacturing establishment, 
and how they are put into practical effect. 

The whole exposition undertakes to answer completely the questions many a 
manufacturer has put to himself or others, hitherto without satisfying answer. These 
questions are : what is the first thing an efficiency engineer does when he comes into a 
plant on the first morning of his engagement — and what is the next thing, and the next, 
and the next? How does he find out where to begin the work of betterment, and 
what does he do when he has found it? 

This is what Mr. Knoeppel explains step-by-step, and chapter-by-chapter. 

As originally prepared the material appeared in a series of articles published in 
The Engineering Magazine during the year 1914. In this volume the matter is much 
expanded, and to a considerable extent recast. The first five chapters, which give 
vividness and a sense of concrete application to the whole thing, are new, except 
the list of questions for self-examination in Chapter V. The chapter on Auxiliary 
Devices for the Planning Department (XIV) and the supplementary chapter on 
Costs (XIX) are here published for the first time, while the chapter on the Efficiency 
Clearing House (XVIII) is considerably enlarged, and minor interpolations amplifying 
or clarifying tjie sense have been introduced at many points. Furthermore, new 
charts, diagrams, and illustrations to the number of thirty or more have been added, 
thus making the book presentation of much increased value even to those who have 
followed the series in the magazine. 

The earnest purpose always and everywhere has been to give wholly frank and 
thoroughly practical working instructions and explanations, covering the entirety 
of efficiency practice, as tested and proven in many important and successful under- 
takings carried out by the author. This purpose both Mr. Knoeppel and his editors 
sincerely hope has been attained. 

Charles Buxton Going. 
November, 1914. 



PREFACE 



ACCORDING to a Latin custom, the author of a book is supposed to 
estabUsh his status, in other words his right to presume upon the reading 
pubHc, to the extent of acquainting it with his ideas and convictions. 

It was my good fortune as a boy to be brought up in the atmosphere of the shops. 
From a serious minded sire, himself a shop man, who talked with me as he would 
have talked with one of his own years, I gained some idea of shop problems, suc- 
cesses, and shortcomings. My ambition was to go through college and fit myself 
for mechanical pursuits. Through circumstances of no consequence to the reader, 
this was unfortunately denied me. The best substitute at hand was to take up work 
in the shop, which I did, starting in the foundry, first as a laborer and then as moulder. 

It soon became apparent that lack of education would prove a decided handicap. 
Study out of work hours seemed the only solution. As a result I was able in time 
to take up work on the drafting board, which I found a most valuable training. 

It was at this point that I began to be interested in discussions of cost and pro- 
duction matters, and the further I read and studied, the more determined I became 
to devote my life to management problems. During the fifteen years that have 
passed since I took up industrial work I have had an excellent opportunity to study 
industrial deficiencies at close range, in a large number of plants, manufacturing 
widely varying lines. 

It seemed strange to me that almost invariably a manufacturer had to be coaxed 
into accepting better methods. Instead of deciding a case on its merits, instead 
of doing a thing because it was good business to do it, the campaign was one of doing 
what was expedient, often unnecessary, and many times wrong. It was necessary 
to worship the god "diplomacy," and if a man possessed tact, ability became a sec- 
ondary consideration. What was done was with the consent of the organization. 
Opposition, sometimes passive, sometimes active, was often encountered. Heart 
failure would have resulted if a manager had said: "Here is the factory; you have 
been found competent to introduce efficient methods; go ahead." 

The word "efficiency" has been juggled until it has lost its real meaning simply 
because it stands for anything that a person wants it to mean. Because of the mys- 
tery with which the methods have been enveloped it is viewed with suspicion and 
distrust. Failures have been many. In some cases the engineers have been re- 
sponsible, but case after case could be cited that would convict the client of "con- 
tributory negligence . ' ' 

Getting into a plant on any pretext and on wild promises and guess work, securing 
a trial contract for one week or longer, in the hope that by "hitting the high spots," 

iii 



¥ 



iv PREFACE 

enough would be uncovered to warrant a continuation, never has secured and never 
will secure results. If a manufacturer feels that the work is impractical — a dream — 
a game to fill the pockets of certain men with large fees — no mere argument will 
convince him that he needs it. If he is induced to go ahead because of excellent 
salesmanship or in a momentary burst of enthusiasm, he becomes discouraged at 
the first sign of complication. 

The profession, for such it is, has not been altogether professional. Ethics in 
many cases have been flagrantly violated. Contracts have been stolen — men won 
over to the client through promise of greater earnings; business thunder has been 
appropriated. Men with a copy of Emerson's "Twelve Principles of Efficiency" 
and Taylor's "Shop Management," plus a prayer, have been able to convince un- 
suspecting clients that they knew exactly what these clients wanted and were pre- 
pared to give it to them. 

Why this condition? My whole experience has taught me that one thing stands 
out above all else as the real reason: 

Lack of a thorough understanding of the proposition both as regards the work it- 
self and the methods followed hy the men identified with the movement. 

It therefore seemed to me that what the industrial world needed most was a 
work of such a practical nature as not only to induce managers to investigate it 
and try it out in small ways in their own business, but to serve in an indirect way to 
furnish the measure of the men competent to handle the details. Knowing more 
about the proposition themselves they would be in a better position to gauge the 
ability and success of the engineer. I have tried to keep to the tried and proven, 
rather than to resort to logic and argument, and it is hoped that in some measure 
this book will open the eyes of executives to the value of the work — so necessary 
to our industrial progress. 

It seems only fitting in connection that I should give credit where credit is due. 
To Harrington Emerson I owe much. In a sense the book is the result of an asso- 
ciation from which considerable was gained in the w^ay of inspiration and higher 
ideals. To the editor of The Engineering Magazine, Mr. Charles B. Going, I am 
indebted for counsel and kindly advice. To my many friends in the profession 
I owe much for helpful suggestions and encouragement. 
August, 1914. C. E. Knoeppel. 



CONTENTS 



Chapter I. The Conditions 1 

The Enterprise Manufacturing Company finds itself in business diffi- 
culties. The facts are stated by the president. The alternative appears 
to be selling out or going out of business. Employment of an efficiency 
engineer is suggested, and after determined opposition is agreed upon. 

Chapter II. The Preliminary Investigation 4 

The problem is stated to the consulting engineer. He analyzes the 
trouble by a series of questions. The examination, cross-examination, de- 
fence and rebuttals. 

Chapter III. The Conclusions 11 

Inefficiencies of management are pointed out by the expert. The 
president's objections are met and answered. Certain changes are recom- 
mended by the engineer, and a campaign of investigation is outlined. 

Chapter IV. Results and Objections 18 

The ratio between certain expenditures and possible income is considered. 
The efficiency engineer cites twelve cases of success, giving facts and figures. 
He answers questions as to the attitude of labor, expenditure of money, in- 
ternal friction, effects of bonus payment, consideration of the human factor, 
permanency of the improvements. He describes as frankly instances of 
failures, explaining the reasons. 

Chapter V. The Self-examination and the Decision 26 

A list of 37 questions by which the efficiency of any plant may be self- 
determined. They are read by the directors, and decision to engage the 
expert is reached. 

Chapter VI. The Business Analysis ^3 

Inaugurating an efficiency campaign. Relations of the engineer to the 
workers and management. Conditions met and methods for meeting them. 
How to secure efficiency leads. Detailed plan of investigation, in 31 sec- 
tions, covering personnel, methods, organization, costs, workers, planning, 
equipment, inspection, power, plant, sales, etc. 

V 






« 



I 



Vi INTRODUCING EFFICIENCY PRINCIPLES 

Chapter VII. The Diagnosis 41 

How to use the data obtained from the investigation. The process chart. 
The chart of methods. The chart of practice. Method of tabulating con- 
ditions and conclusions. A detailed tabulation of 42 examples, with a 
summary showing how to connect difficulties with their causes. The five 
principles upon which betterment work must be founded — organization, 
co-operation, planning, standardization, and incentives. 

Chapter VIII. Prescribing the Treatment 57 

An outline of procedure. Four ideals of conduct. How they are made 
practical. The study division; its work classified and described in detail. 
The planning division; how its work is classified and listed. The standards 
division; its scope and duties. The bonus division; list of its functions. The 
analysis division; details of its duties. Accomplishment report. 

Chapter IX. The Organization 67 

How to make the client accept the plans decided upon. Adjusting the 
functions of line and staff. Functionalizing activities for legislative manage- 
ment. The line functions of engineering and drafting, planning, conditions, 
operations, materials, relations, and incentives. Detailed lists of the factors 
making up each function. Chart of organization of staff and line. The 
executive committee. Personnel of each of the line committees. How work 
is transacted under the legislative system. 

Chapter X. The Engineer, the Management, and the Men .... 76 
Relations between the workers, the management, and the efficiency 
engineer. The correct attitude of the latter toward the plant. Funda- 
mentals of the engineer's conduct. A sample set of instructions for staff 
members. Form for memorandum of matters to be considered. Factors in 
the engineer's relations with the management. Outlining procedure. Deter- 
mining the order in which steps are to be undertaken. Points to be con- 
sidered in departmental studies. Method of charting the facts ascertained. 
An example showing how to begin. The time element. Co-operation of 
the executive management. Co-operation of the shop management. Han- 
dling the workmen. A simple presentation used successfully with employees. 

Chapter XI. The Time Study 90 

Preliminary steps in making time studies. Variables affecting the work. 
Variables affecting the worker. First-class or general time studies. Second- 
class or operation time studies. Five detailed time studies reproduced and 
analyzed. Form for recording time study. Examples of use of time-study 
forms. Third-class or detailed time studies. Chart of a study of a rolling 
operation. Analyses of detailed time studies, showing method of reaching 
conclusions and determining efficiency. The law of dependent sequence. 
Time required to make a time study. Rest and fatigue. Chart showing 
influence of fatigue on an operator. Starting the time-study campaign. 



CONTENTS 



Vll 



Chapter XII. The Planning Department — Analysis and Material 

Control 114 

The fundamentals of efficient planning. Rules for successful planning. 
The necessary staff of the planning department. Analyzing work to be 
done. Form for recording time analysis. Making time estimates. Form 
for estimate card. Planning for assembly times. Graphic analysis of an 
assembly job. How to select the starting operation. The first law of plan- 
ning. Graphic analysis of assembly and operation details. How to schedule 
succeeding operations. The second law of planning. Graphic record of 
progress of work. How to get work through a shop. Analysis sheet for 
structural shop. Form for graphic record of purchases. False and true 
theories of planning for definite output. Control of material. Form for 
material-record sheet. The purchase tracer. 

Chapter XIII. The Planning Department — The Necessary Machinery 127 
Four plans for time keeping. The annunciator board. Form for service 
card. The dispatching board and how to use it. Form for daily planning 
sheet — the key to the whole work of planning. The basic principle of the 
planning sheet graphically illustrated. How to enter successive operations 
on the sheet. Decimal times and the decimal clock. Determining the start- 
ing points for every job. Transferring information from the service card 
to the planning, sheet. Form for authorizing change of scheduling. Three 
ways of planning. Form authorizing over-time. Form for move order. 
How to handle variations between time used and time scheduled. Graphic 
illustration. The operation control-board. Analyzing the control sheets. 

Chapter XIV. The Planning Department — ^Auxiliary Devices . . .141 
The production order. Form for same. The material card. A material 
card for a boiler shop. A part planning schedule. A planning schedule for 
machine shop. The shop order. Form for a shop order. The equipment 
requisition. Form for same. A foundry planning sheet described and 
illustrated. Departmental daily report. Form for showing condition of 
orders. Form for notification of next job. Form for routing card. 

Chapter XV. Standardizing the Working Conditions 153 

What is meant by standardizing a condition. Example from a milling 
job. Example from unsystematic and systematic layouts of factory track- 
age. Examples from grinding operations. A case of piling material. How 
twisting of wire was standardized. A fitting and riveting job. Graphic 
illustration of standardized riveting conditions. Standardizing devices for 
assembly work, for keeping belts, for packing boxes, for placing papers, for 
emery-wheel practice. The machine-tool record. Anticipative inspection. 
Motor inventory and inspection record. Standardizing foundry conditions. 
Standardizing machine conditions. Quality inspection. 

■^HAPTER XVI. Standardizing the Operations ......... 168 

The meaning of standardized operations. Time-study factors used in 
standardizing operations. Manual features and mechanical features. 
How the supervisor of the standardizing division proceeds with department 



.1 



Vlll INTRODUCING EFFICIENCY PRINCIPLES 

officials. Preparing a tentative schedule. Routine of submitting schedule to 
staff and line committees. Staff functions in standardizing operations. The 
several steps of the procedure. A turret-lathe study. Chart showing effect 
of standardization of operations in snagging. How to establish a standard 
time. Rules for the treatment of wide variations in time readings. Sample 
study from a riveting job. Rest allowances and rest clocks. Time estimates 
for special jobs. The operation analysis. The best man versus the average 
man. The problem of the inefficient man. Forms for work schedules, 
boiler-shop schedules, foundry schedules, instruction card. Examples of 
schedules for general riveting, iron work, cupola work, speed and feed 
work. Changing a schedule. Form for requisition for change of schedule. 

Chapter XVII. The Bonus Plan of Wage Payment 187 

Basic considerations underlying the bonus plan. Definition of efficiency. 
Efficiency formulae. Graphic charting of various bonus curves. The recom- 
mended bonus scale. The service card. How to explain the plan to work- 
men. The bonus record and its use. The slide-rule for figuring bonus 
earnings. Proper methods of paying bonus earnings. The bonus check. 
Charging back rejections. The rejection card. Allowances for conditions 
beyond the worker's control. Rules for allowances. The shop-allowance 
card. Keeping efficiency records. Forms for individual and departmental 
efficiency records. Analyzing low efficiencies. Forms for low-efficiency 
analysis. Charting individual bonus earnings. Keeping in touch with 
bonus men. Form for graphic charting of individual bonus record. The 
inefficiency chart. Charting the number of men at various efficiencies. The 
efficiency-record sheet. Departmental efficiency board. Suggestions for 
introducing the bonus plan. How to meet objections and opposition. 
Factors upon which success depends. 

Chapter XVIII. The Efficiency Clearing House . . . . . . . 210 

How to present results convincingly to the executive. A list of fifteen 
causes chiefly responsible for industrial inefficiencies. How to prepare 
charts showing the effect of each. Reproduction and discussion of these 
charts. Delays. Foundry rejections. Changes in planning. Idle-equip- 
ment time. Inefficiency of management. Inefficiency of men. Changes 
in operation schedules. Purchase failures. Delayed shipments. Faulty 
planning. Congestion at machines. Imperfect co-operation. Faulty mov- 
ing of material. Complaints. Charting the general results as to production, 
cost and efficiency. 

Chapter XIX (Appendix). Manufacturing Costs 238 

A skeleton outline of a cost-accounting system, designed for use in plants 
where efficiency methods are introduced, with a tabulated outline of control 
and other accounts and sub-accounts, and definition of charges to be made 
under each. Accompanying forms show graphically the relations of accounts 
to one another. Form for stores replenishment. Form for report of finished 
orders. Form for material returned. Form for report sheet. Form for 
material-delivered card. 



PUTTING EFFICIENCY METHODS 
INTO THE PLANT 



Chapter I 
THE CONDITIONS 

'' X FOR one am convinced that the only course open is to sell the 
I business on the best terms possible." Such was the determined 
statement of John Barlow, president and one of the directors of 
the Enterprise Manufacturing Company, at a meeting of the directors 
called for the purpose of considering ways and means for bettering the 
business. 

"An action of this kind would of course be regrettable, but if there 
is nothing left for us to do, I am disposed, reluctantly, to agree with 
Barlow," was the remark made by another director, Elwood Wilson. 

"Consider the facts for a moment," said Barlow. "We have been 
losing ground steadily for years. Our profits have been on the de- 
crease. We have been forced to raise the wages of our workmen from 
time to time, and I cannot see that they are doing much more than 
they used to. Material is much more costly. Competition is more 
intense. It is much more difiicult to sell our product than it was 
ten years ago. Business conditions have been anything but encourag- 
ing. In desperation I have thoroughly canvassed the situation. The 
possibilities in buying out our competitors, cultivating foreign markets, 
adding new lines to those we are now handling, extensive selling cam- 
paigns, have all been discussed. It means spending considerably 

1 



2 INTRODUCING EFFICIENCY PRINCIPLES 

more than we can afford, no matter what plan we adopt. We can of 
course cut expenses with a meat axe, but this would prove harmful 
to the business. A reduction of wages, to my mind, is the wrong way 
to save money. My candid opinion is therefore that we must sell 
out or face the alternative of voluntarily going out of business." 

At this point the general manager, William Lewis, who had been 
carefully considering the remarks made by Barlow, suggested that a 
consulting engineer on management and organization be called in to 
study the leaks and weak places and outline such constructive measures 
as would put the business on a firm basis. 

"Never while I have a share of stock in this company will I agree 
to a step of this kind," was the heated retort of Barlow. ''If we are 
incapable of managing our own business, then we deserve to lose out, 
for a stranger who knows less than we do about it would only manage 
things in a way that would invite even greater disaster. " 

"I am of the same opinion," said Wilson, "for to my knowledge 
three firms who have had work of this nature done were so dissatisfied 
with results that after repeated efforts to keep things going, they were 
forced to discontinue the improved devices. " 

"That constitutes no argument against the plan," remarked Lewis. 
"Successes can be pointed to, and there may be excellent reasons why 
the installations referred to have failed. The work to date has been 
largely along pioneering lines. Considerable in the way of obstacles 
has been encountered as a result. Progress has been slow. The ounce 
of gold has had its ounce of dross, but as in mining 'pay dirt' has 
finally been reached. " 

"But," said Barlow, "how can a man, no matter how brainy he 
may be, without any knowledge whatever of our business, show us 
where we, who are constantly at work, have failed to manage properly.^ 
It sounds mighty inconsistent to me. Here we have a management 
that costs us thousands of dollars yearly and yet we are sliding back- 
ward. You suggest an untrained outsider who may never have heard 
of us. You'll have to show me. " 

"I know that it sounds inconsistent," said Lewis; "the industrial 
world is not as yet as educated to the extent of calling in a business 
doctor as readily as a business man would a medical doctor or lawyer. 
But isn't it reasonable to suppose that a man who is constantly solving 
industrial problems in a variety of lines will accumulate a vast amount 
of practical information, some of which might prove of value to us in 
the business here?" 



THE CONDITIONS 3 

"Undoubtedly, if he understood our business with its pecuhar and 
complex conditions," replied Barlow. 

''Does the physician you call in know your peculiar and complex 
bodily conditions when he diagnoses your case? Isn't he banking on 
his knowledge of medicine, his experience with many other cases, and 
his ability to find out what ails you before prescribing a course of 
treatment?" asked Lewis. 

"Your argument sounds logical, Lewis," said Wilson, who had 
been an attentive listener to the discussion. "While I must confess 
that I am somewhat skeptical I am willing to say that if such a man as 
you mention can assist us, I am in favor of retaining him, for the 
business must certainly get assistance from some source or we stand to 
lose a good part of our investment. " 

"Who is your man, Lewis?" said Barlow. "I am a skeptic, like 
Wilson, but to the drowning man the straw looks pretty good. " 

"His name is George F. Brown and he has an excellent reputation 
in the industrial field," said Lewis. "My suggestion would be that we 
get him to come here and give us a talk if nothing more. Then if he 
impressed us, he could be delegated to make an investigation, which 
would determine for itself whether we should or should not go ahead, " 

Without much further debate, it was agreed to ask Mr. Brown to 
meet the directors and discuss with them the possibilities in the plan 
suggested by Mr. Lewis. The day was selected and an invitation 
to meet the directors the following Wednesday was sent to Brown, 
who replied that he would be glad of the opportunity to discuss his 
work with the company. 



Chapter II 
THE PRELIMINARY INVESTIGATION 

AT the time appointed, Mr. Brown arrived at the company's 
office and was ushered into the directors' room, where he was 
presented to the several men gathered to hear him describe the 
much talked of subject — management. The directors looked at a 
normal, keen-eyed, serious looking individual and wondered to them- 
selves what there was about him that enabled him to reorganize indus- 
trial concerns. 

''Mr. Brown," said Barlow, "we are confronting a problem more 
or less serious to us, and while we are skeptical with reference to out- 
side assistance, we finally agreed to ask you to meet us, in order to 
ascertain whether you could assist us in solving it for us." 

"What is the problem .f^" asked Brown. 

"We are steadily losing ground with our trade," replied Barlow. 
"Unless we find some means that will enable us to do a larger or more 
profitable business, we will be forced to discontinue. As we are operat- 
ing at present, this is only a question of time — a matter of financial 
ability to withstand losses that are bound to come. " 

"Do you know what the trouble is.^^" asked Brown. 

"No; if we did we would not have asked you to meet us," rather 
testily retorted Barlow. 

"Perhaps I can find out by asking you a few questions, " said Brown. 
"They will serve at any rate to give me an idea regarding the problem 
with which you are confronted. In asking them I may appear blunt 
and personal, but I shall ask you to excuse it all as I am desirous of 
getting at the real situation." 

After thinking for a few moments, Brown began his questions, 
addressing them to Barlow. 

"In the first place, how many men do you employ?" 

"About 1,000." 

"What do you manufacture?" 

4 



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THE PRELIMINARY INVESTIGATION 5 

"Gas and steam engines and a general line of steel-plate construc- 
tion. " 

"Do you make your own castings?" 
"Yes." 

"Your plant therefore consists of foundry, machine shop, smith 
shop, wood-working shop, and structural shop.f^" 
Yes." 

When was the business established .f^" 
In 1855." 

How is the business managed.^" 

Our general manager, Mr. Lewis, is in active charge, under the 
direction of the board of directors." 
Does he have a free hand.^" 
Well, in a way — yes." 
And in a way, no, I suppose.^" 
"He is supposed of course to take up important matters with me 
or the board. " 

"Can he engage or discharge a foreman or purchase a machine on 
his own initiative?" 

"Oh, no! such matters he must take up with me." 
"In other words he carries out your wishes and those of the board 
of directors?" 

Yes, that expresses it." 

What does the balance of your organization consist of?" 
We have a superintendent, a foreman in charge of each one of the 
shops, with assistants under them. " 
Who hires the men?" 
The superintendent. " 
What else does he do?" 
"Looks after the foremen and is responsible for the purchase of 
equipment." 

"What are your cost-finding methods?" 

"We have a cost system that gives us the cost of what we manu- 
facture in our plant. " 

"How do you ascertain your costs?" 

"The workmen turn in time cards showing time worked and pieces 
produced. " 

"Do you use a time clock, or do the men make out their own time 
reports?" 

"The men make out their own time cards." 



a 
a 



a 
a 
a 



6 INTRODUCING EFFICIENCY PRINCIPLES 

"What prevents them from putting down inaccurate time?" 

*' We try to get them to be as accurate as possible. I do not beHeve 
you would find their time statements very far off. " 

**This doesn't answer the question. They could, if they so desired, 
set down figures that would not be accurate, and this would not mean 
that they purposely intended to send in misleading figures. Men will 
leave the matter of time keeping until just before quitting time, and 
it takes more than a man's memory to set down accurate starting and 
quitting times. This is true isn't it.^^" 

"Yes, I presume so; but we have never felt that we wanted costs 
that would balance to the third place. " 

"Do you analyze the times the men report.^" 

"No, we have never done that." 

"Just how do you compile the costs from these cards? " 

"We file them all away, and when we want the cost of an article, 
we take the cards, add all the cost items, and divide by the pieces pro- 
duced. " 

"Is material issued on requisition?" 

"No." 

"How do you compile material costs, then?" 

"We know what material goes to make up a unit. We use current 
market prices and calculate the costs on this basis." 

"You do not balance material issued with material purchased?" 

"No." 

"Does the total amount, as shown by the time reports of the men for 
a period of a week or month, balance with the amount you spend as 
shown by your payroll?" 

"We could not say as to that, for it has never been done. We have 
felt that we could sacrifice extreme accuracy for the sake of simplicity. " 

'*Do you figure your burden or overhead expenses?" 
No, we estimate them." 
Is your costing a part of your general accounting?" 

"No." 

"'Do you maintain a continuous inventory of your materials?" 

"No." 

"Do you know the total of your work in process from time to time? " 

"We have no figures to show this." 

"You are in no position to tell monthly what you have made or 
lost?" 

"No, we have no monthly income statement." 



THE PRELIMINARY INVESTIGATION 7 

"Do you know what you make or lose on the various classes of 
goods you manufacture?" 

"We know in a general way, for we take our costs from the time 
reports, add the material cost, and estimate the burden. The total 
is deducted from the price." 

"Do you ever have to deduct the price from the cost.^^" 

"Yes, we often lose money on articles we make." 

"Who looks after the speeds and feeds of your machines?" 

"The foremen." 

"Who takes care of the belts around the plant?" 

"Sometimes the workmen fix their own belts, or the foreman sends 
for a millwright to take care of the trouble. " 

"How is material supplied to the men?" 

"We aim to keep the men furnished with what they need in the 
way of material, otherwise the men go after it themselves." 

"Do you know what the men are producing?" 

"Yes, we get these figures from the time cards. " 

"You do not make a comparison of daily productions per man, do 
you?" 

"No, we do not go after things that close, but we do look the time 
reports over from time to time. " 

"How often?" 

"Well, I couldn't say exactly, but our cost man is supposed to look 
after this feature." 

"Suppose the men are not producing up to their maximum?" 

"The foremen figure that if a machine is running and the man work- 
ing steadily, the production is forthcoming. " 

"If the tool is cutting wind and the foreman is not around, you lose 
production don't you?" 

"Yes, in this case we would lose." 

" How do you know that this is not often the case? " 

"The foremen are expected to look after this feature. " 

"Are the workmen given definite tasks with instructions regarding 
the way to make the work?" 

"Yes, the foremen tell them what to do. " 

"Verbally?" 

"Yes." 

"I assume that you do not employ time-study methods?" 

"No, we figure that our foremen know more about what should be 
done than would a clerk with a stop watch in hand. " 



8 INTRODUCING EFFICIENCY PRINCIPLES 

"Who plans the work to be made?" 

''The foremen." 

"When do they plan it?" 

"They are supposed to know what the men are doing, when they 
will be through, and what they will do next." 

"Is there anything on record to show this?" 

"Yes, the file of orders and the follow-up from the office." 

"In other words, you have no regular advance planning?" 

"No, we have no system that automatically plans. Such methods 
may work in other establishments, perhaps, but they would not work 
in our business. " 

"Why?" 

"Because we have too many rush orders and changes made by the 
customers." 

"In other words you plan as you go along? " 

"Yes, that is about it." 

"How are the men paid?" 

"We use both the day rate and the piece plan. " 

"Which plan covers the largest number of men?" 

" The piece-work plan. " 

"Do you ever cut piece rates?" 

"Yes, when we find men earning too much money." 

"In other words you limit their earnings?" 

"No, I would not say that we limit them, but we don't want them 
to earn too much. " 

"What do you consider too much?" 

"Oh, $3.50 to $4.00 per day." 

"What do you do when men produce enough to make close to the 
$4.00 mark and then stop?" 

"We would cut the rate to get them to produce more. We do not 
expect to let our men hold back production." 

"What figures do you compile of your idle equipment?" 

"We have never compiled any." 

"In other words, machines could be idle part of the time and you 
wouldn't know it?" 

"The foremen are expected to keep the machines busy.'^ 

"Suppose they are engaged in looking after other things?" 

"In that event the machines would be idle. Our machines, how- 
ever, have been bought and are paid for. I cannot see that we are los- 
ing anything if there happens to be no work for them. They certainly 



THE PRELIMINARY INVESTIGATION 9 

make money for us when they are busy, fo;- many of them were designed 
to produce the parts rapidly. " 

"Evidently you have never figured a rate for your machines that 
would cover repairs, depreciation, power, supplies and the like, in 
addition to that paid per hour for the operator?" 

''No, we never have." 

''What net profit do you estimate you are making.^" 

"About 3 per cent." 

"What did you make ten years ago.^" 

"As near as I can recollect it was 15 per cent. " 

"As you are operating now you are losing from 2 per cent to 3 per 
cent. " 

"How do you figure that out.^" 

"If you had the money represented by the proposition here, in- 
vested in good securities, you would expect to receive at least 5 per 
cent in profit.^" 

"Yes." 

"You are making 3 per cent, therefore losing 2 per cent.^" 

"I see your point. It is well taken. " 

"In other words if you were making 5 per cent you would be making 
nothing .f^" 

"That is true." 

"Do your workmen grind their own tools.^^" 

"Yes." 

"Are tool shapes and angles predetermined.'^" 

"No." 

"Who orders the castings and forgings from your foundry and 
smith shop.^" 

"Our foremen." 

"Do you have any shop chasing methods?" 

"Our foremen look after this too. " 

"In other words, it is up to your foremen not only to order what they 
are to work upon but to see to it that they get it and follow it through the 
departments?" 

"Yes, that is the situation. " 

"Are your shipments made promptly?" 

"Fairly so, although we are often forced to ship our product after 
promise date. " 

"How often does this occur?" 

"Well, I cannot say exactly, but we have our shipping troubles; 



10 INTRODUCING EFFICIENCY PRINCIPLES 

in fact, we lost a good customer only last week because we have been 
unable in the past to make prompt shipment. " 

"Who makes your piece rates?" 

''The foremen look after this part of the work. " 

" What is your power cost? " 

"We never compiled it. We figure that power is the cheapest 
thing about the place. I cannot see that we would gain anything in 
knowing the cost. We use all the power we generate." 



I 



Chapter III 
THE CONCLUSIONS 

AFTER asking a number of other questions along the same Hues 
as those hsted in the previous chapter, Brown said: ''I think 
that I have asked enough questions to get the desired infor- 
mation of a prehminary nature. If you will overlook what may seem 
to be a too candid presentation of my opinion, I will indicate what 
my impressions are with reference to the information you have 
given me. 

"In the first place, " said he, "I am not at all surprised that you find 
yourself on the down grade and that you are only making 3 per cent 
net. I am frank to say that the business is not being managed effi- 
ciently. By this I do not mean that it is being mismanaged. There 
is a distinction between the two. The evidence simply indicates a 
failure to consider certain essential fundamentals in successful manu- 
facturing, a fault that I found, in some degree, in almost every plant 
that I have been in. Naturally you are anxious to know my reasons 
for this conclusion. 

"Your costing is extremely loose. Without a knowledge of what 
your work is really costing you, you are in no position to say to what 
extent your real costs vary from what your work should cost you. 
You have no gauge on performance. Further, because you do not 
employ time-study methods and have no definite tasks, you have no 
means of knowing what performance should be. Consequently, lack- 
ing standards and with no provision for measuring attainment, you 
can readily see that it is a case of operating blindly." 

"Hold on," said Barlow; "our foremen know what should be done 
and they know what the men are doing. " 

"You told me, Mr. Barlow," replied Brown, "that it was possible 
for the machines to be cutting wind and the foreman not know it. 
As the foremen cannot be everywhere, it follows that this can often 
happen. You do not analyze time reports, and we have found that 

11 



12 INTRODUCING EFFICIENCY PRINCIPLES 

when this is not done workmen often take more time to do work than 
is necessary. Suppose the foremen do not know what the men should 
do — and without any reflection whatever on the ability or worth of 
your foremen, we have found many who do not know what constitutes 
a fair day's work under conditions that we know should exist. The 
whole piece-work controversy proves this. " 

"Even admitting the above for the sake of argument, I fail to see 
how it affects the compiling of our costs," said Barlow. 

"Your men keep their own time reports," answered Brown. "This 
puts a premium on inaccuracy. You neither analyze time reports 
nor maintain daily production records. You make no attempt to 
balance your costs with the payroll, and as a result you can easily 
neglect to consider all the costs. You estimate the burden, and I 
judge you use an average ratio. Not making the costing a part of the 
general accounting, it is safe to assume that expense items are over- 
looked in estimating. Material is not issued on requisition — a practice 
that can only stand for waste. Under such circumstances, the costs 
that you compile are misleading because they are based on inaccurate 
returns as to labor, no returns at all as to materials, an average burden 
rate (which being estimated is subject to error), failure to balance what 
is used in labor and material and what is expended for them. " 

"To do all that would require too much red-tape," said Barlow. 

"That is an excuse, not a reason," retorted Brown. "You are 
really losing 2 per cent by doing business, as was pointed out. I am 
trying to show you what is responsible for failure to make more than 
you are making. You reject it because it savors of the complicated. 
Wouldn't a bit of 'red-tape,' as you call it, be justified, if you could get 
down to 'brass tacks' and make 10 per cent, and in time get back to 
where you were ten years ago when you were making 15 per cent?" 

"Yes, if we could accomplish this desire." 

"Have you any reason to feel that it is impossible, that better and 
more up-to-date methods would fail to accomplish much more in the 
way of results than you are now securing?" 

"No, I have not, but I cannot see just how it can be done." 

"I have just outlined some of the causes, the elimination of which 
would assist materially. There is another point, if you will pardon me. 
Your foremen, under the conditions you describe, are so busy that they 
are in no position to run their departments efficiently." 

"It never occurred to us that we were overworking our foremen," 
said Barlow. 



THE CONCLUSIONS 13 

"Perhaps they are not overworked," stated Brown, "but if they 
did as efficiently as possible all the things you indicated as their duties, 
they would have to work 24 hours a day without being able to cover 
the ground properly. They may not appear overworked simply 
because they are unable to take care of all the functions mentioned, 
and as a result do the best they can on what is most important. " 

"I do not see what possible grounds you have for such a statement, " 
said Barlow. "Our foremen have never kicked about doing so much 
work as to make it impossible for them to attend to their jobs. " 

"Take your speeds and feeds as an example," said Brown. "It 
requires considerable analysis and experimenting to determine proper 
combinations of speed, feed, and cut; the best angles and shapes of 
tools ; the best cooling agents ; the kind of steels to use. Yet you expect 
your foremen to do this efficiently. Piece rates cannot be set without 
careful study. It needs infinitely more than a look and a guess. You 
look to your foremen to set fair rates. Unless there is a careful ad- 
vance planning, machines are bound to be either idle or congested. 
You expect your foremen to keep work running through the plant in 
a proper manner with reference to relative importance. You keep 
no data on idle-equipment time because this, you say, is up to the fore- 
men. They must also break in new men, adjust differences as to wages 
with them, look after quality of production, keep up discipline, keep 
down rejections. On top of all this you expect your foremen to exercise 
the functions of an order department in ordering their material, and then 
act as chasers in keeping the work flowing through the plant. The 
only conclusion possible is that you saddle about all the responsibility 
on the foremen. What can they do under the circumstances? Dele- 
gate it to the men under them, the ones least fitted through training, 
ability, and from the standpoint of earnings, to assume it." 

"That is all bosh," said Barlow, rather heatedly. "Mr. Lewis and 
the superintendent help the foremen out." 

"How?" asked Brown. 

"They are in the shops often and take up matters with the foremen, 
calling their attention to things needing consideration, giving them the 
benefit of their advice and in a general way supervising the whole 
proposition." 

"Let me try and prove to you that I am right, " said Brown. "Mr. 
Lewis and your superintendent are further removed from the actual 
work than are the foremen. They have their own work to attend to. 
You admitted that Mr. Lewis did not have a free hand, and that your 



14 INTRODUCING EFFICIENCY PRINCIPLES 

superintendent hired the workmen, in itself no small task and one which 
should be performed by an employment department. They look to 
the foremen for results, and naturally they have heart-to-heart con- 
ferences with them when results are not up to expectations, perhaps 
behind closed doors. What is this but 'putting it up to the foremen'.^ 
I have given very good reasons why the foremen are forced to 'put it 
up to the men. ' Now let me go a step further. The men grind their 
own tools. Without standards as to shape and angles you naturally 
have a large variety, some good and others bad. In all likelihood the 
men set their own pace because you have no definite tasks, your time 
records are in their hands and you make no effort systematically to 
analyze time data. You say they sometimes take care of their belts 
as well as go for material, when it is not supplied to them. Because 
there is no proper planning, they may have to go to their foremen for 
jobs or wait until one is given to them. Consequently they perform 
other functions than that for which they were expressly hired, assum- 
ing responsibilities that rightly belong to the management. What 
other conclusion is possible under the circumstances?" 

''I must confess," said Barlow, with considerable feeling, ''that I 
cannot see your argument. We expect our men to help themselves, 
and when they do this they assist us. " 

"Yes, but in the wrong way," replied Brown. 

"In other words," said Barlow, "your feeling is that we are to 
blame for the condition we find ourselves in. " 

"That is my candid opinion," answered Brown. 

"I fail to see it," was the curt rejoinder of Barlow. 

"Let me outline my reasons more fully," said Brown, "In the 
first place you will admit that you hire men to produce certain articles .^^ " 

"Yes." 

"If they produce a maximum quantity, your costs are less than if 
they produced a smaller quantity .f^" 

"Yes." 

"If they are interrupted, interf erred with or delayed, they cannot 
operate at maximum efficiency.^" 

"No, that is true." 

"Therefore, if they are at work on tasks that can be performed by 
others, the time they spend in this way means that much less in pro- 
duction, does it not.^" 

"Yes, I see that." 

"What happens when a man grinds a tool.^" 



THE CONCLUSIONS 15 

"His machine is idle." 

"You are also willing to admit that the tool may be ground in the 
wrong manner, perhaps burned?" 

"Yes." 

"You lose the equivalent of this time in production.^" 

"Yes." 

"Who runs the machine when a man goes for material, fixes his 
belt, or waits for a job.^^" 

"Why, no one." 

"This would also mean a loss in production.^" 

"It certainly would," 

"I think," said Brown, "that I have made good my assertion that 
you put so much up to your workmen that they are forced to let their 
equipment remain idle while they do the work mentioned. You lose 
as a result. How serious the exact situation is can only be determined 
by a study of the actual shop conditions. It is serious enough, however, 
to warrant your giving the matter your most careful attention. I 
feel that your basis of manufacturing is unsound. " 

"I see your argument," said Barlow, "but wouldn't it cost just as 
much to have these things done by others.^" 

"Admitting for the sake of argument that it would, you would be 
producing more, wouldn't you.^^" 

"Yes." 

"Your expenses would be less per unit manufactured so that your 
total cost would be less.^" 

"Yes, I think so. It would seem so, at any rate." 

"The time spent by men in grinding tools to all kinds of shapes, 
and often burning them, would be greater than required by experts 
who would grind them properly and uniformly and in quantities.^" 

"Undoubtedly." 

"This applies to belts also, doesn't it?" 

"Yes." 

"Ordinary labor at a saving of from 10 cents to 20 cents per 
hour could furnish the workmen with material just as efficiently as the 
men procure it themselves?" 

"Yes." 

"With a proper system, clerks at $Q5 to $100 per month could do 
considerable that is now being done by foremen to whom you no doubt 
pay from $100 to $300 per month?" 

"Yes, this might be done." 



16 INTRODUCING EFFICIENCY PRINCIPLES 

"If orders were properly issued to shops, planned in advance, and 
automatically followed up, this would ease up on your foremen, enabling 
them to do more important things, as well as save time that is often 
wasted by workmen waiting for jobs?" 

"Undoubtedly, if it could be done. " 

"The best answer to that is that it is being done in a variety of 
lines. " 

"It looks to me," said Wilson, who had been paying close attention 
to all Brown had said, "that we have overlooked a number of essentials." 

"I am frank to admit," said Barlow, "that I am beginning to see 
his point of view myself. Perhaps we have been lax. " 

"I regret to say," replied Brown, "that what you have told me 
indicates that you have not taken advantage of up-to-date methods. 
Take your material, for instance. You have no control over it at all. 
You may be carrying too much of one kind and not enough of another. 
It could be lost, spoiled or stolen and you wouldn't be the wiser. " 

"I think," said Lewis, "that you have opened our eyes to a number 
of things. I am sure we would all be glad to have you outline for us 
what your ideas would be along lines of betterment. " 

"This would of course have to be determined by a close study of 
your activities. In a general way, however, I would advise a number 
of changes. First, your organization is not the type to secure best 
results. It means delegated responsibility from the president through 
to the men. The men should be able to turn out a maximum produc- 
tion of high quality. Beyond this their responsibility should cease. 
You should therefore create a staff of men who could supplement the 
efforts of the line, your regular organization — who, through study, 
analysis and constructive work, could outline betterments. Both line 
and staff should be properly organized along legislative lines. Then 
effort should be made to harmonize any warring factions in your 
organization, secure co-operation of the workmen and pave the way for 
the introduction of betterments. The mere fact that you cut your 
piece rates when men earn too much money, shows me conclusively 
that there is room for work of this kind. 

"You should then take steps to co-ordinate the production details — 
to plan, in other words — so that machines would be kept busy, conges- 
tion avoided, jobs, material and tools supplied in advance of require- 
ments, and proper consideration given the most important orders. 
The conditions under which you operate should then be given considera- 
tion and standardized wherever possible, as for instance shapes, angles 



THE CONCLUSIONS 17 

and grinding of tools, belts, etc. You would then be in a position to 
determine, and to set before the men, fair tasks which would consider 
fatigue and unavoidable delays. The men should be offered an incen- 
tive, in the w^ay of greater earnings, to warrant them making every 
effort to attain the standards set, their earnings to depend upon their 
efficiency." 

''Wouldn't this program take considerable time and cost quite 
a little money?" asked Barlow. 

"No doubt it would," replied Brown, ''but it is my j5rm opinion 
that the expenditure would give you what you need most and the gains 
that could be made would many times offset the cost of the service, 
so that, in the long run, the installation would cost you absolutely 
nothing. 

"I would say further," continued Brown, "that the task is not an 
easy one. The first requirement is a change in the attitude and opinions 
of many who may have strong views. Progress must be made slowly 
and surely. I would certainly not advise you even to think of starting 
the work unless you are prepared to see it through to a successful 
conclusion, instead of simply 'trying it out.' A trial indicates doubt 
and disbelief which could easily make for failure. We have found that 
nothing so hampers our work as the necessity of curbing the impatience 
of a client at one time and sustaining his faith at another. " 

"What w^ould you advise?" asked Barlow. 

"I would urge an investigation of conditions to determine what the 
real troubles are, w^hat should be done, what time the work should take, 
and the cost, along with an outline of possible results. " 

"What do you think we w^ould gain by starting a campaign such 
as you outline?" asked Lewis. 

"That w^ould be guessing," said Brown, "and guessing is not scien- 
tific. I would not venture an opinion until I had had an opportunity 
to study the facts." 



Chapter IV 
RESULTS AND OBJECTIONS 

BARLOW, in common with the other directors, was plainly im- 
pressed with Brown's presentation of the case, but still gravely 
doubtful of the expediency of approving changes which seemed 
to involve so much immediate work and, possibly, expense. Still, as a 
business man, he saw clearly that it was a question of the ratio between 
expenditure and income. He spoke after a moment's careful considera- 
tion of the problem in his mind. "Could you give us a general out- 
line, Mr. Brown," he asked, "showing what has been accomplished by 
the methods you stand for?" 

"I know from my own experience," said Brown, "that if all of 
the successes could be written up in one book and placed before in- 
dustrial managers and workers, there wouldn't be enough capable 
engineers to go around. For your benefit I will outline a few cases 
where this work meant excellent gains." He spoke deliberately, 
turning the pages of a small note book containing his points. 

"In one foundry averaging 1,125 pounds per man per day, when 
efficiency methods were started, the production was increased to 
1,634 pounds per man per day in eight months from the start, an in- 
crease of 45.2 per cent through the introduction of planning and bonus 
with better conditions. 

"It was found in one department of a plant that 8.8 motions were 
required per piece. Study and analysis revealed that the motions could 
be standardized at 6 per piece. 

"General Crozier, Chief of Department of Ordnance, in reporting 
on the work done at the Watertown arsenal, stated that on 6-inch 
disappearing gun carriages the direct cost was reduced from $10,229 
to $6,590 and the indirect cost from $10,263 to $8,956. 

"In a structural plant a gang had been driving by hand 432 ^-coun- 
tersunk rivets per day of 9 -hours. The operation was covered by 
planning and bonus and the production rose to 731 per day — an increase 

18 



RESULTS AND OBJECTIONS 19 

of 69 per cent in production with a corresponding decrease in cost of 
13 per cent. 

"Frank Barkly Copley, in The American Magazine, stated that in 
one case previous moulding time was 53 minutes. Moulding was 
standardized at 24 minutes. Moulds were turned out in average of 
20 minutes and one man for an entire day averaged 16 minutes per 
mould, making one in 10 minutes. Cost was cut from $1.17 to $.54. 
Earnings of men increased from $3.28 to $5.74. 

''On candy machines it was found that the pieces were coming out 
of the machines with spaces between them ranging from 1 inch to 6 
inches. By standardizing both the conditions and the operations, the 
loss in space was reduced to 3^ inch to }/2 inch. 

"In hand-filing metal, the operation was studied, planning and 
bonus arranged for, with the result that 2j^ men are now doing what 
previously required 6 to 7 men. 

"The time on steel furnace bells was found to be 147 hours each. 
Work was standardized at 85 hours each. The actual time following 
planning and bonus was 92 hours each with the following results : 

Decrease in time 32.5 per cent 

Decrease in cost 30 per cent 

Increase in production 60.1 per cent 

Increase in earnings 12 per cent 

"In one plant a large multiple radial drill was studied with the 
results shown in the table below : 

EFFICIENCY IN DRILLING 

Actual Standard Efficiency 

Speed 210 325 65 per cent 

Feed 006 .012 50 per cent 

Drills 2 4 50 per cent 

Average efficiency 16.25 per cent 

"Low efficiency due to law of dependent sequence. 

"In making tobacco pouches, it. was found that girls were averaging 
275 per day. After planning and bonus was introduced, they were able 
to make 550 per day, an increase of 100 per cent. 

"In one case three men made, poured and shook out 143 flasks per 
day. Better methods enabled them to make 219 per day — a gain of 
53.1 per cent. 

"Rejections in a foundry were analyzed with following results: 



20 INTRODUCING EFFICIENCY PRINCIPLES 

Fault of men 51 per cent 1 

Fault of iron 33 per cent 

Fault of cores 8 per cent 

Miscellaneous 8 per cent 

Total 100 per cent 

*'It seems to me," he concluded, putting his note book into his 
pocket, "these instances are enough to show the possibilities — I might 
well say, the probabilities." 

"I have heard it said," stated Lewis, "that the methods speed the 
men beyond their safe working hmit. Is there any foundation for 
this statement?" 

"There is no foundation for it," said Brown. "The engineer 
takes into consideration the effect of increasing exertion and he recom- 
mends the provision for rest periods. In one case a man turned out 
16 pieces per hour working as he usually did. When allowed 10 
minutes rest per hour, he produced 23 pieces. " 

"If methods are so efficient, why are not more concerns installing 
them.^" asked Wilson. 

"The movement is a new one," replied Brown, "and because of 
this fact the men competent to install the service are few in number. 
Further, it takes time to study conditions, outline betterments, and 
pave the way for the attainment of greater efficiency, and as a result 
executives have held off on account of the cost. Then there is the 
natural skepticism to overcome that always attends any innovation. 
In many cases concerns have refused to consider the matter because 
they felt it would be equivalent to acknowledging their inability to 
secure maximum results." 

"But how about labor," said Barlow, "why is it opposed to the 
work.^" 

"In the first place, labor does not fully understand the principles. 
The men also feel that they have no interest in the matter because they 
have nothing to say about what shall be done. They also fear what 
they feel will be the wholesale dropping of men. The fallacy of over- 
production also worries them. Another factor is suspicion of anything 
new, due to considerable in the way of harsh treatment in the past." 

"Is the expenditure of considerable money necessary in the way of 
equipment?" asked Wilson. 

"The aim is not to recommend extensive changes and new and high- 
priced equipment," said Brown, "for standards are determined under 
conditions as they exist and the way paved for their attainment." 



RESULTS AND OBJECTIONS 21 

"Does it cause friction?" asked Barlow. 

"Never, if the way is properly prepared for starting the work and 
the importance of tact, diplomacy, and co-operation are fully appre- 
ciated." 

"Are the methods dogmatic and inflexible.^" asked Lewis. 

"There is no part of the service," said Brown, "that cannot be 
readily adjusted when analysis shows the necessity for change. Pro- 
cedure there is, to be sure, but it is not of the iron-clad variety. Com- 
mon sense and the facts in the case are the governing considerations." 

"Does the work disrupt the organization?" 

"The principle is to work with the organization as it is found. A 
difference of opinion is due to faulty assumptions, and the plan is to 
ascertain and correct these assumptions." 

"Why," asked Lewis, "do so many feel that the service can help 
others, but is not applicable in their own plant?" 

"This is a natural attitude," replied Brown, "and one most uni- 
versally met with. It is due largely to the familiarity with local con- 
ditions. The result is that the executive is so close to the details as 
to miss many points that would impress the outsider. Another reason 
is the lack of a full and complete understanding of the methods proposed 
and how and why they secure results. " 

"Do men slight their work under bonus payment?" 

"Eflaciency is as much concerned with turning out good work as 
it is in saving time. Spoiled work lowers a man's bonus, and it is 
therefore to his interest to keep rejections to a minimum. Further, 
one workman will refuse to take bad work from another, which in many 
cases makes inspection automatic. " 

"Is the human factor ignored?" 

"7^ is not. It is recognized that everything depends upon the hu- 
man element. If results were not accomplished through securing the 
co-operation of the men they would not be secured at all. " 

"Is there danger of labor troubles when starting the work?" 

"Not if the campaign is properly started. Tact, diplomacy, fair 
dealing and announcing in the right way what is to be done and why, 
will anticipate any difficulty likely to arise. Object lessons will assist 
materially in allaying fears." 

"I would think," said Wilson, "that intensive methods would 
rack equipment. Isn't this the tendency?" 

"They should not, " replied Brown. "In one plant tools are ground 
two or three times a week. In another the practice is to grind every 



22 INTRODUCING EFFICIENCY PRINCIPLES 

hour. The increase in production in the latter plant pays many times 
over for * burning' up the steel. Speeding-up machines is preceded 
by strengthening the parts, by preparation, by careful attention, etc." 

''Isn't there a danger," asked Barlow, "of the concern losing the 
benefit of the work done after the engineer leaves .f^" 

"Not if the client from the start works with the end in view of 
arranging for a permanent means to carry on the service. In one case 
the client unassisted brought the efficiency from 90 per cent to 115 per 
cent after professional service had been discontinued." 

"I fail to see just why we should organize a planning department," 
said Barlow, "when our foremen are supposed to look after this work. 
Why is it, Mr. Brown?" 

"For the same reason that a railroad would not allow a conductor 
to schedule his own train. Accomplishment is both planning and per- 
formance, and a foreman can secure better results when he can do his 
planning, through the right kind of assistance, well in advance. This 
furnishes the opportunity for getting everything in readiness and leaves 
nothing to chance or memory. " 

"Have you had any failures in your efforts to increase the efficiency 
of plants?" asked Barlow. 

"Yes," said Brown, "along with my successes I have had my fail- 
ures and I would be glad to give you some of the facts in connection." 

"I did not suppose," said Barlow, "that an efficiency engineer would 
admit that he had ever encountered failure. " 

"Why not?" said Brown, "failures are stepping stones to successes 
and are extremely valuable for the lessons they point out. If clients 
would profit by the failures in the past, most of the obstacles to success 
in this work would be removed. " 

"Your frankness is something decidedly new to us," said Lewis; 
"I am sure we would like to hear some of the facts. " 

"Gladly," said Brown, "but in doing so it must not be looked upon 
as an apology. In one case where a bonus plan was at work in which 
20 per cent bonus was paid for 100 per cent efficiency, the client com- 
plained that the money did not interest the help as it had formerly. 
When I installed the plan I recommended a 5 per cent premium in 
addition to the 20 per cent bonus, for all who over a period could qualify 
as 100 per cent men. This was to be an added incentive. I figured 
that men who might otherwise be satisfied with 10 per cent to 15 per 
cent bonus, for showing 90 per cent to 95 per cent efficiency, would be 
wilhng to make the little additional effort, to attain 100 per cent 



- 



RESULTS AND OBJECTIONS 23 

efficiency, for this extra 5 per cent. This the cHent could not see and 
what I was afraid of actually happened. 

"In one plant I got the work fairly started. I had the confidence 
of the management and everything was progressing nicely. I turned 
part of the work over to an assistant, a very capable fellow, who had 
previously done some very good work for me. The organization simply 
would not work with him, and this was not due to his being tactless 
or undiplomatic, for he was careful of what he did and said. The 
organization had confidence in me and no matter what the assistant 
proposed, it wondered what I would have done. As a result progress 
was slow, opposition developed, and nothing like the expected results 
were accomphshed, all because of a lack of confidence that was not justi- 
fied, and because there was not a strong determination on the part of 
the client to see the thing through. 

"I know of another case. The combined efforts of two men, 
working at different times, failed to get the client to see the necessity 
of some action, of some move, that would get the work started. Report 
after report was made, valuable suggestions were outlined, but the 
work never got very far because the client took too much time con- 
sidering pros and cons, and being too busy on other matters, the effi- 
ciency work did not get the attention it deserved, and as a result the 
gains possible were not forthcoming. 

"In one department of a business fair times were determined. 
When the engineer left the efficiency was about 90 per cent. It kept 
climbing until it was about 120 per cent. As the times were carefully 
set, it could only mean that the men were exceptionally quick and sure 
or that quality was being sacrificed. Poor workmanship was found, 
and the client blamed the system when as a matter of fact the fault 
was entirely his own. He should have seen that the men who showed 
high efficiencies were producing work of the right quality. If he had 
the efficiency would have stayed around 100 per cent, the schedules 
calling for a fair and reasonable effort at standard. 

"Another illustration will serve to show the pitfalls to avoid. 
The things that the engineer wanted and considered vital to the suc- 
cess of the w^ork, he could not get. Even though a plan had been 
carefully worked up and approved, he was forced by dominating fac- 
tors in the management to put in what he did not want. For instance, 
the client wanted schedules made and the men put on bonus without 
first planning the work and bettering the working conditions — a policy 
absolutely suicidal to the best success. 



24 INTRODUCING EFFICIENCY PRINCIPLES 

"Failure to get clients to consider properly and decide deliberately 
on betterments has been a factor, with the result that time passes, 
money goes, and nothing is accomplished. Then there is the task of 
sometimes trying to please too many in the organization. This makes 
the work extremely difficult. In one case the client refused to allow 
the engineer to announce to the shop management and workmen 
what the plan contemplated was and what it would mean to them. 
Knowing that something was going to be put in, the men grew suspicious 
when they were not advised — a perfectly natural feeling. Even reli- 
gious differences have interfered with well-formed plans of the engineer, 
something you would not dream would be a factor in this age, but which 
did considerable damage nevertheless. In another case I was told 
that if I would join the Elks the methods would go in. 

"When you meet clients who do not care to know what their costs 
are; who see no possibilities in knowing the idle time of their machines; 
who fail to consider savings in burden and in equipment charges, as a 
gauge of results; who are mortally afraid of system and a few forms; 
who cannot see anything in studying power costs; who consider the 
tool room as a non-productive proposition, and as a result have a most 
inefficient tool practice; who get the opinion about parts of the work 
from foremen who, knowing little about the work at first, are naturally 
opposed to it — the wonder is not that more concerns have failed to try 
it, but that there have been so many unquestionable successes that can 
be pointed out. 

"My whole experience leads me to but one conclusion. If the client 
makes up his mind that he wants the work, he should get the best man 
that he can find. Having found him, and having decided to go ahead, 
he should be very careful not to interfere and place obstacles in the way 
of what virtually is his own success, for after all the engineer is doing for 
him what he lacks the time to do for himself. I do not mean that the 
engineer is to be the final authority as to everything, but if he knows 
his business (and he should not be there unless he does) then he should 
have both authority and status, and be allowed to say what should be 
done, how it should be done, with the right to go ahead, without inter- 
ference, in the quickest possible time and at the least cost. " 

"That has all been most interesting," said Barlow, "and it is the 
first time that I have heard anything at all about the wrong end of 
this proposition. I agree with you that when we know more about 
the failures, the work will be better understood and more easily in- 
stalled. The great trouble has been that we have been led to feel that 



RESULTS AND OBJECTIONS 25 

there was something mysterious about it all; that it could not fail and 
was a cure-for-all. 

''You have gone over the ground in a thorough manner," added 
Barlow, ''and I am sure we are all very grateful and very much im- 
pressed. I think we can call this meeting to a close and later the direc- 
tors can get together and decide upon some form of action. " 

"Before I go," said Brown, "I want to leave with each one a list 
of questions for self-examination. You will find them of particular 
value to you at this time and will assist materially in enabling you to 
come to the right decision." 



Chapter V 
THE SELF-EXAMINATION AND THE DECISION 

AFTER Mr. Brown had left the meeting, each director read the 
following list of questions. There was a noticeable seriousness 
in the air. Each face was thoughtful as the questions were con- 
sidered and gave eloquent evidence of the impression Brown had made. 

List Your Answers for Reference Purposes 



Questions 

1. Is your condition one 
of low costs and high wages? 

2. Do your employees co- 
operate to the extent you 
desire? 

3. How many valuable 
suggestions have you re- 
ceived from your men dur- 
ing the past year? 

4. What proportion of 
your force has been with 
you one year, five years, ten 
years? 

5. Are your men satisfied 
and contented? 

6. Is rest and fatigue of 
the worker studied? 



7. Take an hour or two 
and study an operation as 
to 



Answers 



Remarks 
This can be attained. 

They will if the way is 
properly paved. 

Suggestions can be made 
an important factor. 



Something is wrong if 
workers are constantly shift- 
ing. 

The majority can be 
made so. 

It was found that rest of 
16 per cent resulted in 100 
per cent efficiency whereas 
no rest meant 70 per cent 
efficiency. 

Proper study and analy- 
sis of operations will mean a 
standardization which will 
eliminate wastes in time and 
in motions. 



26 



/ 



r' 



THE SELF-EXAMINATION 



27 



Questions 

A. Material to be handled. 

B. Method of bringing 

the material to ma- 
chine and taking 
away. 

C. Method of piling ma- 

terial. 

D. The machine itself — 

its speed, arrange- 
ment, etc. 

E. Putting work in and 

taking out of ma- 
chine. 



Answers 



Remarks 



F. The facilities 
nished. 



fur- 



G. Strength and skill of 
man. 

H. Size of unit handled. 

I. Length of travel. 

J. Position of worker — 
and — 

What delays did you ob- 
serve? 

Were there any unneces- 
sary motions? 

What was efficiency of 
man? 

Did you see any possible 
improvement in 
methods? 

Were there any inefficient 
conditions? 

8. Are you satisfied with 
the percentage of orders 
shipped on or before date 
promised? 

9. Is strenuousness fos- 
tered or is the attitude one 
of preparedness, care and 
system? 



Proper planning will an- 
ticipate delays and result 
in prompt shipment. 

Strenuousness is not effi- 
ciency. 



28 



INTRODUCING EFFICIENCY PRINCIPLES 



Questions 

10. Is the margin be- 
tween the planning of the 
work and the performance 
such as to enable you to get 
everything in readiness? 

11. Do your workers hold 
back to influence rates? 

12. Do your men have 
anything to do with getting 
tools, drawings, materials, 
and whatever they use? 

13. Do you employ time- 
study methods in your 
plant? 

14. Take the time to 
study your planning: — 

A. Are there delays be- 

tween operations? 

B. Are materials, tools, 

etc., furnished in 
advance of require- 
ments? 

C. Does each man or ma- 

chine work with ref- 
erence to other men 
and machines? 

15. Is the work of your 
men enervating which saps 
energy, or energizing which 
stimulates energy? 

16. Do you arrange to 
plan work each day for the 
next 24 hours and is there a 
"next" job ready for each 
man or gang? 

17. Is the type of your 
management line, staff, 
functional or legislative? 

18. Is inefficiency as be- 
tween the men and the 
management known in the 
form of a mathematical fac- 
tor? 



Answers 



Remarks 
Time losses between jobs 
can be almost entirely elimi- 
nated by advance planning 
and efficient scheduling. 

This can be overcome. 

This should all be done 
for them. 



Time study is one of the 
basic factors in manage- 
ment. 



Wise planning eliminates 
delays, anticipates require- 
ments and arranges for 
best co-ordination. 



It makes a decided differ- 
ence which from the stand- 
point of both men and re- 
sults. 

This is being done in a 
variety of lines. 



This is an important fac- 
tor. 

This can be ascertained 
and the information is ex- 
tremely valuable. 



THE SELF-EXAMINATION 



29 



Questions 

19. Do you know wheth- 
er the ejBficiency of your 
men, machines or depart- 
ments is 90 per cent, 60 per 
cent or 110 per cent? 

20. What would this 
knowledge mean to you.^^ 

21. What is done with 
reference to training your 
men so as to make them 
efficient and desirous of re- 
maining with you? 

22. How do you over- 
come the inertia of your- 
men due to habit? 

23. Is the Sales Depart- 
ment able to sell more than 
the plant can make? 



24. Are piece rates cut 
without changing the meth- 
ods of working? 

25. Are facts as to manu- 
facturing details in the 
heads of your men or a 
matter of record like your 
drawings ? 

26. Do you study econ- 
omy in time with the same 
care as you study the design 
of your product? 

27. Are your men paid 
by- 

A. Day work? 

B. Piece work? 



Answers 



Remarks 
Definite ratios can be de- 
termined. 



C. Bonus plan? 



Elimination of waste fol- 
lows a knowledge of effi- 
ciency. 

This is one of the possibil- 
ities under right methods. 



This can be accomplished 
through wise leadership and 
patience. 

Planning methods and 
furnishing incentives to men 
will assist in matching the 
plant against sales require- 
ments. 

This is not the way to 
secure the full co-operation 
of the men. 

Study of your details and 
standardization will give 
you these facts in proper 
shape. 

Such study means more 
efficient use of time. 



A. No incentive is fur- 

nished in this plan. 

B. Leads to strenuous- 

ness and does not 
foster efficiency. 

C. Furnishes incentive 

and insures day 
wages. Real effort 
is rewarded. 



30 



I 

INTRODUCING EFFICIENCY PRINCIPLES 



Questions 

28. Are conditions such 
as worry or harass the 
workers? 

29. Are efforts made to 
overcome the men's attitude 
of "mental impossibihty?" 

30. Do you anticipate 
breakdown of machines 
belts, etc.? 

31. Is there team play 
and the athletic spirit 
among your men? 

32. Are ideals placed be- 
fore your men that they 
can readily comprehend? 

33. Are you losing power 
anywhere due to inefficient 
transmission lines? 

34. Do you encourage 
your men to complain about 
what seems unreasonable? 

35. Do you get all of the 
available energy out of the 
fuel or power you buy? 

36. Do you provide for 
investigation and better- 
ment of unfair conditions? 

37. In reviewing would 
you classify your results as 
fair, good or excellent? 



Answers 



Remarks 
Men cannot do their best 
work and worry at the same 
time. 

Men do not attempt more 
simply because they do not 
think they can do more. 

This can be done with 
less cost of maintenance and 
with less in the way of lost 
time due to stops. 

This attitude can be fos- 
tered with profitable results. 

Many men become dis- 
couraged when large tasks 
are given them. Advance 
them by easy stages. 

Study usually proves that 
gains can be made here. 

This makes for a healthy 
spirit and leads to better- 
ment. 

Many firms do not. 



It pays in better relations 
with men and in improved 
conditions. 

Nothing short of maxi- 
mum results should satisfy. 



What Are Your Conclusions? 

"Well," said Barlow, "I move we adjourn to the Phoenix Hotel, 
have dinner, and spend the evening in discussing what has interested 
me to a greater extent than I would want to acknowledge generally. 
I am simply astounded at the food for thought this man has given us. " 

'*Your suggestion is a good one," said Lewis. "It will give each 
one of us an opportunity to think it all over before resuming the dis- 
cussion. " 

Two hours later, in one of the hotel rooms, the meeting was again 
called to order, at which time Barlow said : 



THE SELF-EXAMINATION 31 

"You who know me best realize that I am not incHned to exercise 
snap judgment with reference to important matters. Nevertheless I 
must say that I am profoundly impressed with what took place this 
afternoon. I know that I vigorously opposed the idea at the start. 
The arraignment by Brown was a most bitter one, and I must confess 
that several of his statements angered me; but as I cooled off, I was 
forced to acknowledge the soundness of his conclusions." 

"There is no getting away from the fact," said Wilson, "that Mr. 
Brown had us on the defensive. Every question he asked seemed to 
make it worse for us, and I for one am willing to admit that he has 
shown us what we ourselves have overlooked — that there are certain 
fundamentals which must be considered if our success industrially is 
to be all that we desire. " 

"What is your feeling, Lewis.^" asked Barlow. "You were the one 
that started all this. " 

"After considering his talk," said Lewis, "and reading the questions 
he left with us, my conviction is that we should go ahead along the lines 
he mentioned. He convinced me that we need just the kind of medi- 
cine he prescribed. He discovered our shortcomings, outlined what 
would better things, and gave us a frank, straight-from-the-shoulder 
outline of results, objections and failures. Everything considered, 
we would be making a serious mistake in refusing to heed his advice. " 

"While the admission is a most disappointing one to me," said 
Barlow, "I am frank to state that we have undoubtedly been lax. 
I can see that our past achievements are not the kind to warrant us 
in patting ourselves on the back. We can bury the past, however, and 
determine to run things in a more efficient manner in the future. 
What are your suggestions?" 

"I believe, under the circumstances," said Wilson, "that we should 
engage Brown to undertake the task of introducing a campaign of 
betterment. I feel we have a good future before us if we can get on 
the right basis. We have a reputation for quality; our credit is good; 
we are an old and established concern, all of which are distinct assets. 
New tactics would undoubtedly assist us. Further, my money is tied 
up here and I want it to earn something. The statement that we are 
losing 2 per cent hit me with unusual force. We certainly cannot get 
our money out of the business by selling at this time. Spending enough 
to put the business on its feet, in every sense of the word, would un- 
doubtedly mean dividends for us. We have all done the best we could 
and, without any reflection on the ability of Barlow or Lewis, a fresh. 



32 INTRODUCING EFFICIENCY PRINCIPLES 

unbiased, competent anaylsis of our troubles would mean a most 
valuable assistance. I am for going ahead on some such plan as 
Brown suggested." 

"I feel the same way," said Barlow. '*We have all done the best 
we could but our best has not been quite good enough. While we have 
been using the same methods for years, new and better methods have 
been developed and we have simply closed our eyes to the possibilities 
for us. We have been too busy with our own affairs to realize that 
those on the outside were devising just what we need. I know my 
views are different than when I advised selling, but this man Brown has 
impressed me by his arguments. I am the last man to continue a sense- 
less argument when I am once convinced. How can we go about it all.^" 

*'I would recommend engaging Brown," said Wilson, addressing 
Barlow. "In addition, I would suggest that you assume more of the 
duties now being looked after by Lewis. This would leave him free 
to devote considerable time to the new work. The superintendent 
should be given such assistance as would enable him to spend some of 
his time with Lewis. Then let Brown, Lewis and the superintendent 
act as a 'steering committee.' We no doubt have a man who can act 
with Brown under Lewis, who would be trained to handle things when 
Brown left. This to my mind would mean a strong, healthy and 
conservative growth from the start in addition to assuring us a 
prominent part in what will be done." 

"Your suggestions are excellent," said Lewis. "The trouble has 
been in a number of cases that the engineer has come in, after which 
everyone lies back on the assumption that so long as he is there to 
show them how to run things, let him go ahead and do it. Naturally 
when he leaves, there is no one in a position to carry the work on simply 
because no one has been trained to do so. It is like putting a lot of 
lawyers in a submarine after the boat has been designed, built and 
launched. No matter how good the boat is, someone because of inex- 
perience is going to sink it. " 

"I agree with you both," said Barlow. "We must organize the 
work from the start and the best brains we have should be a factor in 
it. I will immediately take steps to relieve Lewis and our superintend- 
ent of enough to enable them to take hold with Brown. If we are all 
agreed I will make the necessary arrangements with Brown." 

This was agreed to by all and the meeting adjourned, each feeling 
that the decision was the beginning of a new era for the Enterprise 
Manufacturing Company. 



Chapter VI 
THE BUSINESS ANALYSIS 

WHEN an engineer enters a plant to commence the inauguration 
of an efficiency campaign, whether in a professional capacity 
or in the direct employ and on the payroll of the company, 
he is immediately confronted with a problem more or less complicated. 
On the one hand are all the workers, with their many variables. On 
the other hand is the management, with its peculiarities. To both he 
has two definite relations : 

1 — The personal or psychological relation. 

2 — The business or practical relation. 

His ultimate success depends largely upon the care with which he 
studies these relations and the extent to which he can get the forces on 
either hand to work to best advantage. 

The engineer will undoubtedly find himself without status or 
authority. To be sure, he is in the plant for a definite and clearly defined 
purpose, but nevertheless he is not in a position to dictate, hire nor 
discharge, order changes, buy the things needed, nor to do as he pleases 
in his efforts to accomplish the results the management wants. In 
other words, he cannot increase the efficiency himself. This must be 
done by and through those in the employ of the company. Conse- 
quently it may be said that everything depends upon how he utilizes 
and manipulates the forces at his command. Therefore, the first thing 
the engineer must do is to "get acquainted" with the members of the 
organization, and to this end he should have the executive properly 
prepare the way. It would be folly, for instance, to call all the heads 
of departments and officials together, and then have the president or 
general manager address them in this strain: 

"I want you to meet Mr. Blank. He is here to show you all up. 
You are not producing all that you can. The results for some time have 
not been all they should be, and it is about time that we cut out the 
wastes and got down to business. Mr. Blank will show you the way. " 

33 



34 INTRODUCING EFFICIENCY PRINCIPLES 

The only advice possible under such circumstances would be kindly 
and charitably to advise the well-meaning engineer to pack up his 
belongings and go home. He would have as much chance to secure 
results, in the face of such a blundering start, as I have of designing 
a 100 per cent efficient flying-machine to-morrow. 

A meeting should be held, by all means. It is a most excellent way 
of starting the work, and if the men are approached in the right way, 
it will mean much to the success of the undertaking. The men should 
have pointed out to them a brief outline of the principles; what has 
been accomplished elsewhere; what the work means to them, and to the 
company. Concrete examples should be cited. A brief description 
of the possible local application should be given. The keynote of the 
whole meeting should be the value of co-operation. The men should 
be made to feel that the service contemplated is in no sense a reflection 
on individual worth or ability. 

The engineer should then arrange to talk to the men individually 
at their work, ascertaining their ambitions, desires, complaints, troubles, 
criticisms and suggestions. Cold-blooded and austere men are often 
met with, and it seems difficult to get "under the skin" but some plan 
will usually be found to get a man to "warm up" and discuss things 
in a detailed way. I do not mean by this that the engineer is to grow 
so familiar as to arouse the contempt of the department heads. I do 
mean, however, that the engineer must he kindly, sympathetic, desirous of 
showing that he wants to assist — to build up and not tear down — and must 
be able to hold his own viewpoints in abeyance until such time as he can 
discuss them with some hope of having them accepted or at least looked 
upon with favor. 

You cannot expect to go out to a man, hit him over the head with 
an argument, and expect him to swallow your bait, hook, line and sinker. 
He won't do it. He thinks he knows more about his business than the 
engineer does, and in this he is undoubtedly right. The engineer 
cannot make him see that he knows more about the application of the 
principles of management, until the engineer has convinced him that 
there are elements about his work that make him doubtful about his 
own ability. Diplomacy and tact, the quality of inspiring leadership 
rather than forcing co-operation, are most essential elements. 

To test for co-operation and to secure much in the way of excellent 
leads from the organization, the form shown in Fig. 1 can be used 
to advantage. If few are turned in it means that the co-operation is 
not all it should be. 



THE BUSINESS ANALYSIS 35 



ErnCTENCY RECOMirE^T)ATIONS 



SUBJECT DATE 

DEPT. 



The efficiency of the above department could be increased if the following could be eliminated 

bettered or installed 



DESCRIBE CONDITION BELOW 



REASON FOR ABOVE 



RECOMMENDATIONS COVERING ABOVE, FROM DATA AT HAND 



TO EFFICIENCY DEPARTMENT: 

Kindly investigate above, advising as to outcome. 

SIGNED. 



The Engineering Magazine 

Fig. I. Form for Securing Efficiency "Leads" from the Organization 

So much for the personal relation. The engineer must also devote 
his attention to getting acquainted, in another way — with such factors 
concerning the practical features of the business as will put him in 
touch with the necessary information on which to outline a plan of action. 

The following plan of investigation will, in this connection, be found 

of value to the engineer : 

' /I. Make a list of the members of the organization^ and ascertain as to each: 



36 INTRODUCING EFFICIENCY PRINCIPLES 

A — ^What does he cover? 
, B — Whom does his work influence? 

. C — How is he influenced by others, and to what extent? 
, 2. As to each person — study him at his work, in conversation, in disputes and 
quarrels, by interviewing his superiors, and by eliminating all personal bias and 
giving each person the benefit of the doubt, answer the following: 
A — What other work is the man qualified to cover? 
B — Who else in the organization can assume his duties? 
C — Is he responsive to suggestions? 
D — ^How^ does he take criticism? 
E — Is he spasmodic or consistent? 

F — Does he think for himself, or depend upon others? 
G — Is he a keen, deliberate thinker, or quick to jump at conclusions? 
H — Is he overworked? 

• I — Considering ability, as poor, fair, good or excellent, how do the following 
check up? 

1 — Judgment. 
2 — ^Accuracy. 
3 — Executive ability. 
4 — Initiative. 
5 — Co-operation. 

6— Energy. , 

7 — ^Aggressiveness. 
J — Is he capable of self-direction? 
3. As to methods, secure a copy of each form used and discover as to each: 
A — Who uses it? 
' B — Who supplies the information from which the form is made out? 
C — In what manner is the information furnished? 
D — Who gets the forms? 
E — What other forms are affected? 
F — What use is made of the information? 
G — What is the relation between the forms? 
> 4. Get from the company, or make, a complete set of floor plans, showing loca- 
tion of machines, benches, vises and floors. 

5. What is the class of product? 

6. Is it made in 

A — Stock quantities? 

B — ^To specification only? 

C — Combination of two? 

D— If "C," which is greater, "A" or "B"? 

7. Is the type of organization 
A — The usual, leading from manager to superintendent, to foremen, to men? 
B — Functional or Taylor? 
C — Staff or Emerson? 
D — Legislative? 
E — Combination, and if so of what nature? 



THE BUSINESS ANALYSIS 37 

8. As to departments: 

.-A — ^How are the departments divided as regards sequence of operations? 
^ B- — What is the nature of the work done in each? 
' C — ^What is the number of men employed in each? 

9. As to costs: 

A — ^What is the method of costing? 

B — ^Is costing part of the general accounting? 

C — Is costing on a 30-day basis? 

D — What basis is used for apportioning burden to production? 

E — Are cost reports prompt, reliable, and comprehensive? 

F — ^What real use is made of cost statistics, and by whom? 

10. As to workmen: 

A — ^Is the plant union or non-union? 

B — If union, in what departments? 

C^ — ^What have been past labor troubles? 

D — Causes, and how settled? 

E — Any agitation at present or in prospect? 

11. Are employees paid by 
A — Day rate? 

B — Piece rate? 

C — Premium plan? 

D — Bonus plan? 

E — In what departments do they apply? 

12. As to efficiency of men: Are they working 
' A — In a leisurely way? 

B — ^At very low efficiency? 

C — ^At fair efficiency? 
' D — ^At high efficiency? 
r E — ^Holding back? 

(Note — List according to departments.) 

13. As to planning: 

A — Is material furnished in advance of requirements? 
B — Is supply adequate? 

• C — ^How about the handling? 

• D — What delays were noticed? 
'E — Cause of delays? 

' F — Who does the planning? 
' G — How is it done? 

• H — How far in advance? 

• I — ^What records are used? "* . 

• J — What is nature of the preparation covering **next job"? 
- K — Is material handled back and forth unnecessarily? 

14. As to materials on each floor: 

A — Did you see plenty of material ahead? 

B — Where were the places where material was running low? 

C — What steps were taken to replenish a low stock? 



38 INTRODUCING EFFICIENCY PRINCIPLES 

D — What time elapsed between running out of material and replenishment? 

E — Was material piled in an orderly manner? 

F — Is material easy or difficult to get at by workmen? 

G — ^Who is responsible for moving material and how does he get move orders? 

15. As to inefficiencies noted: 

A — What were the conditions found? 
B — What are the principal defects? 
C — What would you outline as constructive measures? 
D — ^What was the efficiency? 

(Make a number of time studies if possible. If this cannot be done, make 
notes and estimate the inefficiency.) 

16. As to belting: 

A — Are belts tight or loose? 

B — Are they laced properly? 

C — Are they clean, or in dirty, greasy condition? 

D — What is the alignment of shafting and pulleys? 

E — Do belts ride true or against cone steps? 

F — ^Are belt records maintained? 

G — Who looks after work, and when? 

H — How many belts in use? 

17. As to inspection: 

A — Do prints show plus or minus allowances? 

B — Who is responsible for inspection? 

C — Is there inspection of raw material? 

D — What disposition is made of raw material not up to specification? 

E — What is done with incorrect drawings? 

F — Are first pieces of any operation inspected as completed? 

G — Is there inspection upon completion of a lot of pieces before movement 
to the next operation? 

H — Do men use rules and micrometers, or are there gauges for the work? 

I — Is there inspection previous to final receipt by stores or shipping depart- 
ments? 

18. As to power: 

A — Number of tons burned per day? 

B — Horse power developed? 

C — Kind of coal used, and the cost? 

D— Method of firing? 

E — Is feed- water heater used? 

F — Is economizer used? 

G — What is evaporation of water per pound of coal? 

H — What is temperature of feed water? 

I — What is the stack temperature? 

J — What is proportion of CO2? 

19. As to conditions: Outline your impression as to 
A — Lighting. 

B — Heating. 



THE BUSINESS ANALYSIS 39 

C — Ventilation. 

D — Generation and transmission of pneumatic power. 

E — Power transmission. 

F — ^Trucking and conveying. 

G — Hoisting. 

H — Storage, handling and piling of materials. 

I — Sanitation. 

20. As to operation: 

A — To what extent are labor-saving devices studied and installed .f* 

B — ^How is the jigging of the work handled.'^ 

C — Describe fully the tool room arrangement and the system used. 

D — To what extent is multiple machine- work done? 

E — ^What are the methods of inspection? 

F — Do men work to drawings or to gauges? 

G — ^Does work necessitate much filing and fitting? 

H — ^Who looks after the speeds and feeds? 

I — ^Do men grind their own tools? 

21. As to employment: 

A — ^What is the nominal force employed? 

B — ^How many men were hired per month? 

C — ^How many men quit? 

D — ^How many men were discharged? 

E — What is the cause of dissatisfaction among men, if any? 

F — ^What is the relation between A and B? 

22. As to buildings: 

A — Is plant well laid out? 

B — Nature of building construction. 

C — ^Are buildings old or new? 

23. As to sales: 

A — What is method of distribution? 

B — ^How are selling prices made, and by whom? 

C — How are selling policies determined, and by whom? 

D — How are salesmen selected and trained? 

E — ^How is unexpected competition anticipated? 

F — Is the selling organization able to sell more than the plant can make? 

G — What is done to add new lines of work? 

H — ^How is sales efficiency determined? 

24. As to factors influencing co-operation: , 
A — Are men satisfied and contented? 

B — Is rest and fatigue of worker studied? 
C — Is the work enervating or energizing? 
D — Do workers hold back to influence rates? 
E — What is policy regarding cutting rates? 
F — Do conditions worry and harass the workers? 

G — Are men allowed to complain about what seems unreasonable, and what 
attention is paid to such complaints? 



40 INTRODUCING EFFICIENCY PRINCIPLES 

H — Is strenuousness fostered? 
I — What is done with the inefficient men? 
General Questions. 

25. Are breakdowns of machinery anticipated? 

26. If so, in what manner? 

27. What is your impression of the foremanship? 

28. What are the average earnings of men by departments? 

29. Is the control of material as to purchasing and stock-keeping such as to 
insure the maintenance of the proper amount of stock at all times? 

30. Does the company arrange for securing suggestions from men and rewarding 
them for those accepted? 

31. What proportion of orders are shipped on or before date wanted? Reason 
for delays? ■ ^ 

The above is sufficient, with the many other questions which will 
naturally suggest themselves to the engineer, to cover the various de- 
tails in connection with the operation of an establishment. The 
engineer will have as a result of an investigation as outlined a fund of 
very valuable information. He will have to analyze and study it 
all — in other words, make a diagnosis to determine what is wrong, where 
it is wrong, and what will cure. He is then in a position to prescribe 
a course of treatment. ' 



Chapter VII 
THE DIAGNOSIS 

NO physician blindly prescribes a course of treatment. He first 
examines to get at the facts, then gives serious consideration to 
what he has collected through questioning, tests, etc., and from 
his conclusions he is able to state what the matter is and what will elimi- 
nate or cure the trouble. This ''synthetic analysis" is what is pop- 
ularly termed the "diagnosis." The engineer bears exactly the same 
relation to the client as the physician to the patient. The client is in no 
better position to tell the engineer what is the matter with him and what 
he needs than the patient is in to tell the physician what ails him. It is 
therefore obvious that the engineer must diagnose exactly as the physi- 
cian does. He must analyze symptoms, local complaints, functional 
disorders, and then outline the course of treatment. In other words, it 
is not so much a question of what to do as of how to determine what to do. 

The engineer should therefore take his forms, his time studies, his 
impressions, his floor plans, his facts as to planning conditions, and other 
information gathered as the result of the examination outlined, and after 
retiring to a quiet corner, commence the task of matching facts and con- 
sidering evidence. He is a judge, in other words, considering argu- 
ments for and against the application of certain definite laws and prin- 
ciples. It is true that no definite rule can be laid down for diagnosing 
a case. This is largely a mental process, but it is a process nevertheless 
based upon and determined by the many facts gathered. 

The engineer is on speaking and perhaps friendly terms with the 
various members of the organization. He knows who are for him, who 
are against him, and who are neutral. He has a fair conception how 
to approach each member. He knows what each covers or is supposed 
to cover. He has in addition an excellent idea as to the real worth to 
the company of each member of the organization. 

A chart should be drawn up in graphic form, showing the organiza- 
tion as it exists, as indicated by the answers to the questions covering 

41 



42 



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THE DIAGNOSIS 43 

this point. This will show the relation of each person to every other 
person, a study of which will be productive of much good. It will make 
it possible to tell whether the organization is good or bad; where func- 
tional lines cross; where factors are inefficiently covered, or where too 
much attention is given to other factors. See Fig. 2 for an outline 
of organization. 

The engineer, if the business is of a complicated nature, should make 
a process chart showing the travel of the operation through the plant. 
Fig. 3 is a sample chart of the processes in one plant, from which it can 
be seen how difficult it would be to write a description of the details in 
a comprehensive and intelligent manner. 

The answers to questions covering the methods in use should also 
be charted, as indicated in Fig. 4. A picture covering methods and 
forms will enable the .engineer to tell exactly what the real situation 
is, where too much or too little in the way of system is employed, where 
several methods are in use to accomplish the same results, where cer- 
tain individuals are overburdened with detail work, what points are 
not covered properly, etc. Finally this chart will be a decided con- 
venience when the engineer plans out new methods to graft to the old. 

A chart outlining the manufacturing practice can be made to assist 
in diagnosing, as shown in Fig. 5. 

In going further into the matter of diagnosing, we can use a number 
of assumptions to illustrate as clearly as possible the method to follow. 
The imagination will not be drawn upon in this. The assumptions are 
based upon absolute facts and 7iot theory. The conditions will be arranged 
on one side, opposite which will be set the conclusions. 

Conditions Conclusions 

1. During his investigations the engi- Here we have a case in which fear is 
neer observes that a workman completed aroused in the man. The man was 
on an operation, 30 pieces of a certain afraid of a cut in the rate. Further, de- 
article, which at the piece rate of 18 cents ceit is fostered. This condition is the 
would equal $5.40 for the day. The man result of a false managerial policy and can 
in reporting, however, only claimed 18 mean only that industrial conditions are 
pieces as the day's work, which would not what they should be. 

mean earnings amounting to $3.24. 

2. The engineer has been advised by In this case we have every evidence 
the shop foreman that a certain job takes that the shop management does not know 
27 hours for 2 men. Study develops, what constitutes a fair day's work. The 
however, that 9 hours for the 2 men are fault is lack of standards. 

sufficient. 



44 



INTRODUCING EFFICIENCY PRINCIPLES 




The Engineering Magazine 



Fig. 3. Graphic Representation of Processes and Routing in a Representative Plant 

Names of departments and operations are omitted by the request of the proprietors 
of the estabHshment in which this chart was made. 



THE DIAGNOSIS 



45 




1^ 



Iglli 
2l-'I.K 



46 



INTRODUCING EFFICIENCY PRINCIPLES 



Manufacturing 



I Efi&ciency Practice | 



Analysis & 
Study 



line of 



Outli 
Standard Practice 



I Purchaaing 

Sar Stock 
; Shapes 

liumoer 

I 
Supplies 

Castings 
I 



Ordering 



I Engineering | 



Steel Brass 



Eecei,ving 

Unloading 

i 

Storing &, Piling 

Handling & Moving 



Malleable 



Parts 



Groups 



Units 



Drafting 



Changes 



Prints 

& 
Sketches 



Lists i& 
Bills of 

Material 
I 



I Shop Cond itions 



Power, 'Air 
Heat & Light 



Tools 
Machinery 



Shop Transportation 

& Hoisting 

^ 



I Shop Operations | 

Tools-Jigs 

Machi nJLng 

I 
Asseifibly 



Groups 



Engines 



I 

Erection — — — 
I 

Testing 

Painting 
I 

Finished Product 



Accounting Practice 



xgi 



Analysis & 
Study 






Criticism of 
Actual Practice 

1 






Income- 


Cost 




= Profit 


Loss = 








- Income 



+ 



The Engineering Sfmgazine 



Fig. 5. Graphic Outline of Manufacturing Practice 

Conditions Conclusions 

3. He further noticed that on repetitive As a second set of jigs could have been 

work only one jig was supplied on certain made and supplied the workman, it is 

operations, with the result that the ma- plain that the working conditions as well 

chine was idle while the workman was tak- as operations for this particular work are 

ing piece out of jig and putting in another, unstandardized. ^ 



THE DIAGNOSIS 



47 



Conditions 
4. In making brief studies of the ma- 
chines it is found that on a number of 
them the proportion of actual working 
time to the running time is as follows: 



Conclusions 
As regards this condition, every evi- 
dence points to lack of planning and fail- 
ure to standardize operations and condi- 
tions. 



Per Cent 


Per Cent 


A. 32.6 


J. 62.3 


B. 31.9 


K. 59.0 


C. 40.0 


L. 40.4 


D. 51.0 


M. 29.5 


E. 36.0 


N. 24.3 


F. 59.0 


0. 33.9 


G. 63.0 


P. 44.0 


H. 45.0 


Q. 50.9 


I. 37.3 
Average 




. 44.1 



The balance, 55.9 per cent, was made 
up of delays, machine changes, lack of 
work, etc. 

5. The superintendent states that when 
men hold back production, he promptly 
cuts the rates to force them to speed up, 
and when he finds that men earn too 
much, the rates are also cut. 



6. It was also noticed that drills and 
sockets were supplied the men in an un- 
systematic manner, making it necessary 
for the men to sort and fit whenever they 
change drills. 

7. The engineer is advised by a work- 
man that he had been turning out 4 pieces 
per day paying Q5 cents each or $2.60. 
He found a way, without any help from 
the company, to produce 6 pieces, with 
the result that the rate was cut to 45 
cents. The man stated that he offered to 
do the 2 pieces for 45 cents if he could 
get 65 cents for the other 4. The offer 
was refused and another man assigned to 
the job who could only turn out 4 pieces 
per day, so the rate was placed back to 
65 cents. 



This the engineer feels to be a case of 
the man "getting his" going and coming 
and explains the condition described at 
39. No co-operation could be expected 
under such a suicidal plan. It can mean 
only the existence of the worst hind of 
industrial relations. 

This means poor working conditions as 
well as failure to plan. 



Another example of the policy which 
tends to kill co-operation. Poor indus- 
trial relations. 



48 



INTRODUCING EFFICIENCY PRINCIPLES 



Conditions 

8. In the foundry he notices that 
moulders have to wait for jobs, pat- 
terns, flasks, cores, rigging, etc.; that 
the sand is not in the proper condition 
in the morning to enable the men to 
start right to work; that the men have 
to hunt for rods, nails, gaggers and other 
things they need and that the men 
themselves spend more time than is neces- 
sary in ramming, setting the gaggers, 
finishing, etc. 

9. The attempt of the engineer to get 
suggestions from the heads of depart- 
ments through the use of the *' efficiency 
recommendations" results in practically 
nothing, only a few being received. 

10. The engineer in going into the 
structural shop observes a gang riveting 
at the rate of 570 rivets per day and his 
brief time study indicates that 750 per 
day would be a fair standard — an effi- 
ciency of 70.6 per cent. 

11. The engineer finds in testing the 
attitude of the shop management through 
questions designed to bring out their feel- 
ing towards better methods, that the 
basic consideration seems to be that so 
long as production is not interfered with 
he can "try" anything he wants to. 

12. In studying the foremanship the 
engineer is struck with the conditions 
which make job- and material-chasers out 
of the foremen. This he finds is due to 
lack of advance knowledge; assembly 
work is undertaken before it is known 
whether material is on hand or will be 
ready; when parts are needed, it is the 
task of the foremen to get behind and 
push and crowd them through. 

13. In analyzing the work of a large 
multiple radial drill, which had been 
pointed out to him as working at high 
efficiency, he gets at the following facts: 



Conclusions 
Here we have lack of planning, un- 
standardized conditions and failure to sup- 
ply incentives. 



An indication that there is lack of co- 
operation. 



Another case of lack of standards. 



This spirit indicates that the shop man 
agement considers the proposition as 
trial." — It means possible opposition. 



on 



This can be summed up as the brute- 
force type of well-intentioned but in- 
efficient shop management, due to lack of 
planning. ; . 



Another case of lack of standards and 
failure to functionalize the work. 



THE DIAGNOSIS 



49 



Speed 

Feed 

DrUls 



Conditions 

Actual Standard Effy. 

per cent. 
210 325 65 

.006 .012 50 

2 4 50 



Conclusions 



16.25 



Efficiency 65x50x50= 

14. In studying the machining of parts 
he notices that in a certain lot of an order 
of 50 parts, 5 are at the assembly bench, 
10 at the milling machines, 15 at the drill 
presses and 20 at the lathes. Further, the 
assemblers are grabbing the pieces from 
the machines while still hot. 

15. The moving of material, the engi- 
neer finds to be a "one-man" proposition. 
He finds there is no regular plan of mov- 
ing as regards the relative importance of 
the work. There is no selection — any job 
finished is movable. The urgency for 
parts is such that in many cases part 
shipments are rushed — a truck containing 
only a few small pieces. Instead of a reg- 
ular schedule of travel, truckers go here, 
there, and elsewhere, unable to keep up 
with the work at one time and not having 
enough to do at another. 

16. In studying the machine operations 
themselves, he is impressed with the fact 
that while there is little evidence of delays 
and stops, the men seem to be holding 
back. He observes further that each 
machine seems to have plenty of material 
ahead although it is piled in a "fall any- 
where" fashion. 

17. It is found that the theory of man- 
ufacturing is to get out a definite number 
of units each week; that there is a varia- 
tion in manufacturing operation times of 
180 to 1 ; that all the pieces requiring little 
work are usually ready while the parts 
taking longer time are hard to get. It 
also means few units at the beginning of 
the week and a peak load at end of week. 



This is strenuousness due to lack of 
planning. 



Another case of failure to plan and lack 
of proper working conditions. 



This simply means a quiet or passive 
sort of conflict between men and manage- 
ment for which faulty industrial relations 
are responsible. 



The theory is wrong to start with. It 
should be at the rate of a definite number 
per week. There is a decided difference 
between the theories. 



50 



INTRODUCING EFFICIENCY PRINCIPLES 



Conditions 

18. The engineer notices several cases 
where the moulder is nailing up a loose 
bar in his cope or cutting out part of a 
bar so his pattern will fit. 

19. It was also noticed that the work- 
men on assembling are subjected to nu- 
merous delays. It was found that men 
could not get the material they needed 
and in several instances were forced to 
work on what they could get rather than 
on what they should have received. A 
lack of an even balance also appears. In 
the beginning of the week material is not 
in sufiicient quantity to keep the men busy. 
Towards the end of the week, as the mate- 
rial arrives in larger quantities, the gangs 
are rushed, making overtime, night work, 
and Sunday work a necessity. It is also 
noticeable that material is delivered in an 
unsystematic manner, making it neces- 
sary for the men to paw over and find 
the parts needed. A large amount of filing 
and fitting also attracts attention. Work- 
men are also noticed going to machines 
and waiting for certain parts to be com- 
pleted so they can proceed with their work. 

20. It is further found that although 
the shops are not operating under any of 
the newer types of management, with 
studies showing that the men are working 
at a low efficiency, the average day rate 
is 23 cents per hour and the piece rate 
earnings 34 cents per hour — a bonus of 
47.8 per cent. 

21. The engineer is informed that work- 
men often turn in times on piece-work 
jobs that would not be sufficient to do a 
good job, turning in the balance of their 
times on day-work cards. 

22. In the drill-press department, he 
finds that against an average day rate of 
20 cents per hour, 34 out of 40 drill-press 
hands average 31 cents per hour, for 71 
per cent of their time, while lathe and 
planer hands earn 37 cents per hour. 



Conclusions 
This is due to lack of "planning. 



In this condition we have inefficiency 
due to a wrong theory of manufacturing^ 
lack of planning^ and poor working con- 
ditions. 



This means that piece rates were set 
too high to begin with and explains why 
cutting is resorted to. Another case of 
not knowing what constitutes a fair day's 
work, because of lack of standards. 



This means lack of supervision, ineffi- 
cient records, and failure to provide stand- 
ards. 



Not only is this another example of 
high piece rates, but the situation can 
mean only dissatisfaction on the part of 
the more skilled workmen in the shop. 
Lack of standards is again responsible. 



THE DIAGNOSIS 



51 



Conditions 
23. In making a power chart the engi- 
neer notices that the maximum required 
is not reached until 7.45 in the morning, 
where it remains until 11.50. In the 
afternoon it is not reached until 2.05, 
dropping off about an hour before quit- 
ting time. 



24. In studying the generation and 
transmission of air, the engineer finds that 
the average pressure at the power house 
is- 93 lb. In one department readings as 
low as 55 lb. were found, and at no place 
did pressure exceed 75 lb. In 202 leads 75 
leaks were noticed. It was found that 
men used air from openings as large as J/g 
inch for blowing purposes ; that tools were 
thrown on floor with air turned on; that 
the men were forced to use wrenches in 
operating valves because of broken valve 
levers, and that hose was in wretched 
shape in many places. 

25. In the boiler shop it is observed 
that the margin of time between getting 
drawings and prints and starting the 
work in the shops is too short to admit 
of any advance planning; that it is a case 
of working as best they can on whatever 
they can get. The immediate present is 
all that is concerning the shop. 

26. It is found that boiler test readings 
show 7 lb. of water evaporated per pound 
of coal with a feed water temperature of 
190 degrees. 

27. As to planning, the engineer finds 
that there is little or no attempt to plan 
and schedule the work in advance. He 
finds it a case of assembly foremen crowd- 
ing the machines and the machine fore- 
men crowding the foundry. He further 



CONCLUSIONS 

This means that there are delays in the 
morning due to setting up for new work. 
As regards the afternoon it may mean 
either a natural inclination to take things 
easy after dinner, or that piece work earn- 
ings in the morning, when men were fresh, 
might easily have run over the normal 
half-day's wage, and under fear of rate 
cutting the men might deem it advisable 
to slow up in the afternoon. Another case 
of lack of standards and failure to supply 
incentives. 

Conditions decidedly unstandardized. 



Another case of lack of planning. 



Unstandardized conditions. 



Lack of planning. 



52 



INTRODUCING EFFICIENCY PRINCIPLES 



Conditions 
notices that the preparations covering 
"next jobs" is a matter of verbal notifica- 
tions by foremen to men. He also finds 
that it is up to the men to go for drawings, 
tools, materials and that they have to 
grind their own tools. 

28. In charting the travel of many of 
the standard parts made in large quanti- 
ties, the engineer notices that there is con- 
siderable unnecessary handling between 
machines, due to poor location of ma- 
chines. 

29. Upon examining the employment 
records, it is found that to maintain a 
nominal force of 600 people, 2,100 are 
hired in a year or 3.5 changes per year. 
It further develops that 250 of the 600 
men were in the employ of the company 
for the year, raising the ratio to 6 men 
hired to maintain one position. 

30. In studying the stoppages and 
breakdowns of certain machines, the en- 
gineer finds upon careful investigation 
that 75 per cent of them are due to pre- 
ventable causes. 

31. As to wage plans it is found that as 
far as possible piece rates have been intro- 
duced, all other work being covered by 
the day-work plan. The policy is to cut 
rates when the earnings of the men get too 
high, a matter left entirely to the judg- 
ment of the superintendent. 

32. The engineer finds that the costing 
is a matter of compiling data from inaccu- 
rate shop records as to labor and material; 
that no attempt is made to figure burden 
accurately; that the costing is not on a 
30-day basis nor a part of the general ac- 
counting plan; that such reports as are 
made are neither prompt, reliable nor 
comprehensive, and that no systematic 
attempt is made to analyze cost records, 
the information being used chiefly for 
estimating and sales purposes. 



Conclusions 



Due to failure to standardize operations. 



This is conclusive evidence of the worst 
kind of industrial relations. No efficiency 
is at all possible under such conditions. 



This is due to lack of anticipative in- 
spection and failure to standardize working 
conditions. 



This simply means that maximum effi- 
ciency cannot be expected from those paid 
by the day, and from the evidence gath- 
ered the piece plan also fails to accomplish 
what is desired. A case of failure to 
supply incentives. 

This means that there is absolutely no 
way of gauging the efficiency of opera- 
tions, and even if standards were set up 
it would be difficult if not impossible to 
compare actual results against them. 



THE DIAGNOSIS 



53 



Conditions 

33. The engineer finds that the type of 
organization is the one most common to 
industrial plants, in which president 
forces manager, manager forces superin- 
tendent, superintendent forces foremen, 
and foremen force men. 

34. As to belting, the engineer finds 
things in wretched shape — belts greasy 
and dirty, running on pulleys any old 
way, against the cone steps and splitting 
along the edges, with faulty lacing and 
pulleys and shafting improperly aligned. 

35. He notes further that machines are 
repaired w^hen they break down, not he- 
fore; that there is no anticipation of trou- 
ble that is likely to develop in factors 
which should have periodic attention, and 
that repairing is done in working hours. 

36. In analyzing the shipments he finds 
that less that l/3 of the orders were 
shipped on or before date wanted; that 
cancellations were high, due to failure to 
ship as promised, and that the shop is con- 
stantly forced to rearrange its plans to 
meet demands of customer. Rush orders 
act as a "flying wedge.** 

37. The engineer notices that the fore- 
men are so busy chasing jobs and mate- 
rials, assigning work, and answering ques- 
tions about drawings, that little or no 
time is left for studying the best combi- 
nation of speed, feed, and cut, the limita- 
tions on the machines, the most efficient 
jigging, and other matters vitally af- 
fecting the matter of cost and production. 

38. In watching the work in machines, 
the engineer notices case after case where 
a machine is broken down to set up for one 
or tv/o pieces of a rush or forgotten order 
and then set up for regular job again. 

39. As to the men themselves, the engi- 
neer senses a feeling of distrust, of sullen- 
ness, of hostility. They do not offer sug- 



Conclusions 
A force-and-drive type, wrong in theory 
and in practice and incapable of securing 
maximum results. 



Another example of failure to standard- 
ize conditions. 



Means unstandardized conditions. 



Due to lack of planning. 



Failure to functionize the work due to 
unstandardized conditions. 



Due to lack of planning. 



Faulty industrial relations due to lack of 
proper ideals on part of management. 



54 



INTRODUCING EFFICIENCY PRINCIPLES 



Conditions 

gestions, they are crowded hard, until the 
result is a strenuous drive for production. 
Rest and fatigue are not studied, the men 
resent the cutting of rates, there is every 
evidence of holding back — some men 
openly stating that they could and would 
do 50 per cent more work if rates were 
guaranteed. 

40. The engineer finds that in certain 
operations 8.8 motions are made per 
piece, when 6 would do the work just as 
efiiciently. 

41. In studying the work coming from 
machines he notices that the space be- 
tween the pieces is from 1 inch to 6 inches 
when ample allowance would be l/2 inch. 

42. In a foundry it is claimed that 90 
per cent of the rejections are due to the 
materials used. Analysis shows that the 
men themselves are responsible for 51 
per cent of the rejections. 



Conclusions 



Due to failure to study and standardize 
operations. 



Unstandardized operations and condi- 
tions. 



Unstandardized conditions^ 



The engineer is confronted with no easy task in attacking this mass 
of evidence preparatory to blocking out his plan of action. It is like 
valuing intangible assets — little to go by with plenty of evidence to 
work on. 

The questions are — what are the problems ahead of the engineer.^ 
How is he to reduce these forty-two cases to a concrete basis? How is 
he to determine the relative values of the points brought out? It is 
obvious that a general reading would be confusing and that some form 
of summarizing is therefore necessary. 



THE SUMMARY 

A. — Faulty industrial relations 

1-5.7.16-29-39 
B. — Lack of standards 

2-10-13-20-21-22-23 
C. — ^Unstandardized operations 

3-4-21-28-40-41 
D. — Unstandardized conditions 

3-4-6-8-15-19-24-26-30-34-37-41-42 



THE DIAGNOSIS 5^ 

E. — Lack of planning 

4-6-8-12-14-15-18-19-25-27-36-38 
F. — Failure to supply incentives 

8-23-31 
G. — Lack of Co-operation 

9-11 
H. — Incorrect theory of manufacture 

17 
I. — Inefficient records 

2-32 
J. — Wrong type of management 

33 

THE PRINCIPLES 

The engineer is getting closer to "brass tacks." Before he can 
write the planks in the platform on which he will carry the fight against 
inefficiency to the limit, he must analyze to determine logical arrange- 
ment. He does this and here is his outline: 

1. He must from the start arrange for the substitution of a better type 
of management. Why? Because what is accomplished will be done 
through the organization, and it needs a type of the highest order. It 
is the machine, in other words, that will turn out efficiency as a product, 
and it must therefore be properly designed to start with. 

2. He must then arrange to anticipate opposition and turn it into 
co-operation. Why? No results of value can be secured without co- 
operation. A good type of organization with opposition encountered 
is about as efficient as a gear stripped of its teeth. 

3. He must correct the theory of manufacture and arrange for the 
most improved methods of planning. Why? Given 1-2 how could 
results be secured, if the co-ordination of the thousands of details in 
connection with production is left to chance, to guess work, to memory? 

4. He is then in a position to arrange for standardized conditions 
and operations. Why? Because the planning in itself will have a 
direct influence on conditions and operations. Because standardizing 
operations and conditions would accomplish much less without plan- 
ning. 

5. He is now in position to place definite standards before the men and 
management and make the records more efficient. Why? Could a man 
make a piece of work in 10 hours which previously took 15 hours with- 
out planning and with conditions and operations unstandardized? 



56 INTRODUCING EFFICIENCY PRINCIPLES 

6. He must then plan out ways and means for bettering the industrial 
relations — supplying incentives to those employed. The best organi- 
zation in the world with the best of co-operation is powerless to accom- 
plish anything worth while if industrial relations are faulty. 

In other words the principles about which he will carry on his entire 
work are — Organization, Co-operation, Planning, Standardization, Incen- 
tives, 



Chapter VIII 
PRESCRIBING THE TREATMENT 

IT is one thing to diagnose a case and find the troubles, and quite 
another to prescribe the treatment necessary to ehminate them. 
The engineer in whom we have personified our efficiency work 
through the preceding .chapters was able to satisfy himself, after the 
investigation made, that every evidence pointed to the worst kind 
of relations between men and management ; that planning was conspicu- 
ous by its almost entire absence; that conditions were not as efficient 
as they should be; that operations were unstandardized, and that the 
proper incentives were not furnished the workers. He further deter- 
mined that the principles about which he would have to build his plan 
of campaign were: 

1. Organization. 

2. Co-operation. 

3. Planning. 

4. Standardization. 

5. Incentives. 

THE OUTLINE OF PROCEDURE 

The problem confronting the engineer, then, is to determine what to 
do, why, where, the order in which it should be done, when and how. 
He can do one of two things — select the most obvious course and ''feel" 
his way along as he goes on with the work, or he can plan the entire 
procedure in advance, varying it later as may be determined by subse- 
quent study. The first course is a vague, unbusinesslike, unintelligent, 
leave-it-to-the-Almighty method, as against a comprehensive, definite 
and prearranged plan. 

He adopts the following as ideals: 

1. For everything that is done, there is, under existing conditions, 
a best way of doing. 

57 



58 INTRODUCING EFFICIENCY PRINCIPLES 

2. No man should be allowed to do any work that can be done by 
another with less skill and at less expense. 

3. Men should be given every opportunity to measure up to the 
limit of their possibilities. 

4. What is done should be in the right way, on the right thing, at 
the right time. 

To make these ideals practical he arranges for the following steps: 

1. Search out the inefficiencies at all points in the business, at 
such time and in such a manner as to secure all the facts needed. 

2. Make careful time and motion studies covering planning, con- 
ditions and operations. 

3. Arrange for co-ordinated planning. 

4. Determine standards as to conditions and operations. 

5. Devise methods for carrying on the work as outlined. 

6. Prepare instructions covering the procedure determined upon. 

7. Ascertain accomplishment so as to measure same with standards. 

8. Investigate reasons for failure to attain standards. 

9. Analyze delays, complaints, allowances, rejections and ineffi- 
ciencies. 

Consideration shows the engineer that the existing organization 
which he calls the ''Line" is too busily engaged in performing the various 
duties in connection with its regular work to devote painstaking and 
comprehensive attention to the factors mentioned. It must be properly 
assisted and, to this end, he decides to create an organization to be 
known as the "Staff" — advisory in nature and without jurisdiction 
over any of the line officials. Its chief function is to analyze and point 
out the road to business efficiency. The task of attaining the ideals 
pointed out is the junction of the Line. 

Before taking up the matter of welding staff and line to make an 
efficient machine which will produce the results possible, the work of the 
staff should be fully outlined under the following headings: 

1. Study division. 

2. Planning division. 

3. Standards division. 

4. Bonus division. 

5. Analysis division. 

He now proceeds to a detailed analysis of the factors in each of these 
divisions of staff work. 



prescribing the treatment 59 

1. Study Division 

The work of this division will include the making of all time and 
motion studies, investigations, preliminary surveys, or general studies 
covering the various features of the business, as well as the classifica- 
tion and proper arrangement of the facts secured for use by either the 
Planning or Standards Divisions. The responsibihty of this division 
ceases, however, when studies have been made and arranged in perma- 
nent form. The work of this division will be divided into: 

A. — Organization. 

B. — Engineering and Drafting. 

C. — Inspection. 

D. — Planning. 

E. — Conditions. 

F. — Operations. 

G. — Materials. 

H. — Relations and Incentives. 

The details of these classes may be further defined thus: 

lA. Organization 

Compiling lists of departments, product manufactured in each, approximate 
quantities, capacity, force employed, department heads and assistants, and their 
relation to the management. 

Securing facts that will determine strength or weakness of the various members 
of the organization. 

Determining to what extent there is concerted action in all important matters. 

Studying for evidence of '* individualistic" management. 

Ascertaining wishes of company oflficials as to where constructive measures shall 
be started. 

Observing where surface indications point to the possibility of making gains 
quickly. 

Making list of starting departments for considering the advisability of beginning 
in these departments. 

Drafting the measures necessary to unite line and staff. 

After due consideration of these points, drawing up a tentative program covering 
the introduction of the work in the various departments. 

IB. Engineering and Drafting 

Co-operation between engineering and operating departments. 

Limits and tolerance. 

Clearness and accuracy of drawings. 

Foundry and pattern work in relation to designing. 

Scaling for measurements in shop. 



60 INTRODUCING EFFICIENCY PRINCIPLES 

Designing with reference to using most ejQScient machine tools in shop. 
Designing without reference to jigging when jigging is necessary. 
Studying proper use of chucking and finishing bosses. 
Studying designs making necessary the cutting of excess metal. 

IC. Inspection ^ 

Purchasing and stores control. 

Ordering methods. \ 

Shop routing. * 

Drawings and sketches. 

Gauges and precision instruments. 

Methods used in inspecting. 

ID. Planning 

Collection of such data for purposes of planning as may be necessary to establish 
relations between parts, groups, and assemblies, and between shops and foundry. 

IE. Conditions 

Plant Buildings and fixtures. 

Drains and sewers. \ 

Tracks and switches. 
Tool 
Equipment Machines. 

Jigs and fixtures. 

Cutting tools. 
Power 
Generation Steam. 

Electricity. 

Compressed air. 

Hydraulic power. ^ 

Power I 

Transmission .Shafting and pulleys. 

Boxes and hangers. 

Belting. 
Air 
Transmission Pneumatic tools. 

Pneumatic lines. 

Hose and connections. 
Yard Loading. 

Unloading. 

Handling. 
Facilities Transportation. 

Hoisting. 

Storage. 
General Ventilation. 

Heating. 



PRESCRIBING THE TREATMENT 61 

Lighting. 
Sanitation. 
Lockers and baths. 
Medical attention. 

IF. Operations 

Setting work in and taking out of machines 
Kind and weight of material to be handled. 
Size of unit handled. 

Method of bringing material to machines and taking away. 
The facilities furnished. 
Strength and skill of the man. 
Position of worker. 
Length of travel. 
Speeds and Feeds 

Kind of work to be done. 
Pulling power of machine. 
Shape of tool. 
Kind of steel. 
Limits reached and why. 
Small Tools 

Control as to types, sizes, and shapes. 

Number to carry. 

Kind of material. 

Clearances and angles. 

Forging, tempering and grinding. 

Arrangement as to: — 

Uniformity. 

Accessibility. 

Distribution. 

Inspection. 

Maintenance. 
Machines on which they are used. 
Position in tool holders. 
Faulty and inefficient practice. 
Relation to work to be done. 
Machine Tools 
Arrangement. 

Limitations in cones, bearings, heads, rests, beds, tool holders, stocks and clamps. 
Chatter. 
Power. 
Inspection. 
Maintenance. 
Adaptability to work. 
Too much or too little equipment. 
Modern or out of date. 



6^ INTRODUCING EFFICIENCY PRINCIPLES 

Jigging of work 

Setting jigs and fixtures. 

Putting work in jigs and removing same. 

Removing jigs. 

Faulty practice. 
Assembly and Erection 

Supply of parts and groups. 

Best combination of groups and parts. 

Best method of assembling. 

Limitations and faulty conditions. 

Methods of piling and handling. 

Filing and fitting. 

Floor space used and required. 
Fitting, Riveting, Welding, Caulking, etc. 

Study of current practice. 

Limiting conditions. 

Supplying material. 

Facilities furnished men. 

Wastes in time. 
Moulding and Coremaking 

Study of men as to physical characteristics, earning power, training, experience, 
skill, health, habits, tendency to fatigue, etc. 

Study of work as to moulds, cores, flasks, patterns, irons, sands, facilities, sur- 
rounding, etc. 

Study of motions as to ramming, setting gaggers, nailing, slicking, finishing, shovel- 
ing, setting cores, closing, pouring. 

IG. Materials 
Price. 

Uniformity. 
Quality. 
Unit quantity. 
Adaptability. 
Equivalency. 
Margin to carry. 

IH. Relations and Incentives 

Getting men to discuss problems and troubles. 

Consideration of force, worry, strenuousness, mental attitude, habit, faith and 
exertion. 

Study of concentration, interest, imagination, initiative, memory, imitation, 
attention. 

Disputes and complaints. 

2. Planning Division 
It will be the function of this division to investigate at all points 
in the plant with reference to the planning and dispatching of production 



PRESCRIBING THE TREATMENT 63 

details, and to devise the standard practice necessary for putting this 
feature of the work on the best possible basis. The work of planning 
will be considered under three heads: 

A. — Basis for Planning. 

B. — Making Plans. 

C. — Execution of Plans. 

The details of these headings will be as follows : 

2A. Basis for Planning 

Knowledge of what to make, quantities, and the time allowed. 

Analysis of orders as to operations, units of work, the assignment to gangs and 
machines and operation times. 

Complete knowledge as to receipts and disbursememts of material, showing bal- 
ances at all times. - 

Determination and maintenance of stock limits. 

Prompt checking of requirements against stock. 

Scheduling orders received. 

Control of movement of material. 

Control of shop timekeeping. 

Securing facts as to work finished by men and machines. 

2B. Making Plans 

Routing orders that have been analyzed to machines and gangs. 
Selecting and scheduling each day sufficient work for the next day. 
Furnishing shop with information regarding plans made. 
Study of previous planning to avoid congestion at machines. 
Rearrangement of schedules to meet unforeseen contingencies. 

2C. Execution of Plans 

Having one job ahead at all times. 

Having materials, tools and drawings ready for next job. 
Delivering work to machines and gangs. 
Checking orders as to progress. 

Studying conditions which interfere with prompt execution of plans, or with 
keeping machines and gangs fully supplied with work. 
Advising management as to items needing attention. 
Following up shortages. 
Ordering parts to replace spoiled or defective work. 

3. Standards Division 
This division will have charge of the work of determining tlie best 
practice under existing conditions, from studies turned over to it by 



64 INTRODUCING EFFICIENCY PRINCIPLES 

the Study Division. The complete procedure is then to be outHned 
and standards determined in terms of time, cost or production. 

This division will also have charge of making and issuing all sched- 
ules, operation instructions and standard practice instructions covering 
the details in connection with Standardization. In scope this division 
will cover: 

A. — Conditions (See IE). 

B. — Operations (See IF). 

C. — Materials (See IG). 

4. Bonus Division 

This division will have charge of the work of introducing and han- 
dling the details in connection with the bonus system, as well as with the 
matter of allowance made to men for conditions not under their control. 
In a general way its duties will be 

Properly placing schedules before men. 

Responsibility for issuing correct information as to standards on service cards 
for men. 

Figuring standard time on service cards. 

Calculating efl&ciencies. 

Figuring bonus earnings. 

Keeping bonus record. 

Issuing bonus checks. 

Forwarding record of bonus earnings to payroll department. 

Keeping part efficiency record. 

Placing efficiency showings before men and departments. 

Investigating and recording complaints from men. 

Adjusting disputes with men. 

Adjusting efficiency records on account of rejection and allowances. 

Recording allowances. 

Ascertaining inefficiency of men and management. 

Determining causes of delays and complaints. 

Placing responsibility for inefficiency of management. 

Investigating allowances made but not approved by foremen. 

Making reports showing efficiencies of men, machines, departments and operations. 

Making record of and investigating low efficiencies. 

Investigating conditions which interfere with attainment of standards. 

Making charts covering average bonus earnings per man. Proportioning bonus 
time to total time. Inefficiency of men and management. Men at classified efficiencies. 

5. Analysis 
The Analysis Division is to be the ** efficiency clearing house" in 
that everything in the way of data and information of value is to be 



PRESCRIBING THE TREATMENT 



65 



taken by this division, carefully analyzed, and compiled for quick 
reference for use by those whose work it is to increase the plant efficiency. 
Its work will consist of the compilation and analysis of the follow- 
ing: 

Delays. 

Allowances made to cover inefficiency and management. 

Rejections according to departments, men, operations and causes. 



ACCOMPLISHMENT 


REPORT 




SUBJECT 


DATE 




DEPARTMENT OPERATION 


DESCRIBE CONDITION PREVIOUS TO BETTERMENT 


OUTLINE NATURE OF BETTERMENT ARRANGED FOR 
APPROXIMATE COST OF BETTERMENT $ 


TIME TAKEN TO EFFECT 




RESULT OF BETTERMENT 

APPROXIMATE YEARLY SAVING $ 

DECREASE IN COF,T % 


INCREASE IN PRODUCTION 

DECREASE IN FORCE 


% 

% 


SIGNED Br 



The Engineering Magazine 



Fig. 6. Accomplishment Report 



Changes in working and manufacturing schedules. 

Complaints from men and foremen as to working times and working conditions. 

Efficiencies. 

Low efficiencies. 

Inefficiency of management. 

Bonus earnings. 

Materials and supplies used. 

Time and production reports. 

Operation time for purposes of estimation. 

Results attained, whether in planning, conditions, or operations. 

All time-study data. 



66 INTRODUCING EFFICIENCY PRINCIPLES 

Inspection reports covering conditions. 
Relative importance of parts and groups. 
Manufacturing and efficiency progress reports. 

In organizing this staff there should be a chief-of-staff, who will 
have full charge of the work as outlined, as well as the charge of and 
direction over the men under him. 

To cover the work of the various divisions the chief-of-staff will 
have as assistants a study supervisor, a planning supervisor, standards 
supervisor, a bonus supervisor, and an analysis supervisor. 

It is obvious that the work to be done must proceed along logical 
lines. Consideration will show that in anything, study precedes 
action. This study may be general in character or the minutest detail 
can be investigated. Consequently the starting point is study and as 
a result, planning and standards are influenced. No bonus would be 
arranged for until planning was under way and conditions and opera- 
tions standardized to the extent necessary. 

Analysis would then take the facts secured, and through compilation 
and analysis use them in an effort to indicate new fields for study. 

Therefore whether the consideration is an operation or machine, a 
single department or the entire plant, the procedure is exactly the same 
— there is no end anywhere. Analysis precedes study the same as 
study precedes planning or standards. 

To gauge the success of the work done by the staff, use should be 
made of the form shown in Fig. 6, which is a report on accomplishment. 
It is most important that the staff hold at least one meeting per week, 
to talk over the work done and to outline tentatively future efforts. 



Chapter IX 
THE ORGANIZATION 

WILL the tail wag the dog or the dog wag the tail? " This ques- 
tion may not be clothed in the most dignified English, but it 
sums up the situation now confronting the engineer. In other 
words, after making the examination, diagnosing the case, and prescrib- 
ing the treatment, he must next induce the patient to take the medicine. 
The doctor would not say — '*here is some medicine, take it" — leaving 
it entirely to the whims and inclinations of the patient. He would 
say — "take two of these before each meal and one of these before 
going to bed and upon arising in the morning. " His directions would 
be explicit, rather than general. 

The client may balk. So does the child when the taste of medicine 
is disagreeable. The client will want to take something else than the 
dose prescribed. We have all done the same thing many times. The 
client may want to change doctors. We have felt the same about 
this also. We have, however, taken disagreeable medicine, followed 
exactly the doctor's orders, with no thought of a change in pilots, 
only when we first realized the seriousness of our case and fully appre- 
ciated that the doctor seemed to know exactly what he was doing. 

The relation of the staff to the line must therefore be considered. 
As can be appreciated, the staff, being analytic and advisory in charac- 
ter, with no supervision over department heads, can do little in itself 
in the way of actually producing results, because it is not a performing 
function. It cannot force acceptance of its orders. It is therefore 
imperative that some plan be devised for so organizing the relations 
between staff and line as to enable both to work to best advantage. 

To accomplish this the following is necessary: 

1. Organize the staff as outlined. 

2. Maintain the line organization intact. 

3. Functionalize the plant activities in a concise yet comprehensive 

manner. 

67 



^ 



68 INTRODUCING EFFICIENCY PRINCIPLES 

4. Arrange for the consideration of all important matters, by both 
staff and line, along such legislative lines as to render it difficult, if not 
impossible, to determine where staff advice ends and line acceptance 
begins. 

In order to organize for "Legislative Management," the line ac- 
tivities should be thus f unctionalized : 

Engineering and drafting. 

Planning. 

Conditions. 

Operations. 

Materials. 

Relations and incentives. 

The factors making up each function are as follows: 

Engineering and Drafting 

Estimates. 

New designs and changes in design. 

Experiments, tests, analysis of data pertaining to the product manufactured. 

Repair work on product. 

Supervision of new work being made. 

Installation of product. 

Sketches, drawings, tracings. 

Disposition of incorrect drawings. 

Issuing drawing with important dimensions properly marked and in addition 
showing plus and minus allowances. 

Changing and proper issuing of changed drawings to the shops. 

Arranging for return of superseded drawings. 

Blueprints and bills of material. 

Photographs and catalogues. 

Preparing drawings for tools and jigs. 

Passing upon points of inspection when inspectors are unable to reach a decision, 
in cases where there is a possible departure from the design called for. 

Consideration of complaints from the trade. 

The handling of cancellations. 

Making changes called for by customers. 

Conditions 

Delivery of material to men and machines. 
Standardizing conditions from outlines received from staff. 
Maintenance of plant and equipment. 
Responsibility for requisitioning equipment for shops. 

Responsibility for keeping departments clean and orderly and free from con- 
gested material. 

Responsibility for maintaining methods designed to cover conditions. 
Inspection of equipment at regular intervals to anticipate delays and breakdowns. 



THE ORGANIZATION 69 

Use of floor space. 

Maintaining records covering tools, jigs, and dies. 

Moving tools and jigs from storage to machines and returning them when work 
is finished. 

Keeping tool storage clean and orderly with tools properly arranged. 

Keeping tools in readiness for instant use. 

Maintaining proper supply of tools, drills, cutters, to enable the plant to operate 
to best advantage. 

Forging, grinding and tempering tools for most efficient service. 

Responsibility of efficiency of tool room. 

Charge of and authority over material chasers. 

Periodic inspection of tools at machines to insure their being kept in best condition. 

Control of small tools as to size, shape, and kind of steel. 

Accident and surgical service. 

Maintenance of most efficient belting conditions. 

Study of high speed steels, their proper use and treatment. 

Cleaning up and disposing of refuse in shops. 

Responsibility for reports on conditions. 

Provision for necessary watchmen. 

Responsibility for keeping track of changes or additions to equipment. 

Responsibility for delays in shop when due to conditions within the control of the 
management. 

Operations 

Responsibility for best combination of speed, feed, and cut. 
Directing men as to proper use of speeds, feeds, and cuts. 

Responsibility for gauges, tools, etc., necessary to properly inspect the product 
manufactured. 

Responsibility for most efficient jigging of work. 
Standardizing operations from outlines received from staff. 
Execution of orders as to quality. 
Employment of workmen. 

Responsibility for operation delays in the shop when due to causes within the 
control of the management. 

Appointing and discharging foremen. 

Laying off, disciplining, or discharging workmen. 

Responsibility for efficiency of labor. 

Supervision of foremen and men. 

Responsibility for maintaining methods designed to cover operations. 

Tools and jigs: — 

Designing. 

Approving drawings. 

Requisitioning. 
Character, capacity, and limitations in machines. 

Listing antiquated machinery, if any, and machines that have little to do. 
Keeping men and machines producing up to maximum. 
Placing spoiled work for inspection. 



70 INTRODUCING EFFICIENCY PRINCIPLES 

Setting work in and taking out of machines. 

Study of parts in their relation to groups and units to facilitate proper inspection. 

Inspection of raw materials as to rough dimensions, and to drawing in case of 
intricate work. 

Responsibility for efficiency of inspection. 

Responsibility for stating whether rejected material is due to faulty workmanship 
or defective material, and if to faulty workmanship, who is to blame and why; and if 
to defective material, what is the cause. 

Analysis of rejections to determine to what extent errors and defects can be 
eliminated. 

Handling rejections: 

A. Deciding whether rejection is total loss or not. 

B. Disposition if not total loss. 

C. Breaking down rejected assemblies and movement of parts to proper place. 
Charge of inspection department. 

Inspecting parts after each operation before movement of material to next op- 
eration. 

Improvement or changes in manufacturing processes that do not interfere with 
design of product. 

Directing men to work to drawings and specifications. 

Approving the standard times determined for various manufacturing departments. 

Execution of orders for delivery specified or promised. 

Planning 

Responsibility for carrying out in the various departments the methods devised 
for efficient shop planning. 

Getting jigs and drawings in readiness for work. 

Analysis of groups and parts as to relative importance to the whole or to each 
other. 

Giving each department sufficient time in which to turn out product desired. 

Keeping after repair parts in shop. 

Starting job with drawing, tools, jigs, etc., in readiness. 

Supplying proper information to shop truckers and material chasers. 

Responsibility for seeing that no material is moved from machine to machine 
until approved by Inspection Department. 

Following up shortages of material. 

Following up orders. 

Rearrangement of manufacturing schedules to meet delivery dates. 

Arranging for such meetings as may be necessary to properly plan work ahead. 

Keeping track of material due on orders. 

Responsibility for having at least one job ahead of each machine or gang in ad- 
dition to the one being worked upon. 

Reporting departmental delays that will interfere with schedules. 

Analyzing and routing parts from detailed drawings. 

Planning all orders that have been previously analyzed and routed. 

Responsibility for replenishment of rough and finished parts. 



THE ORGANIZATION 71 

Scheduling deliveries. 

Securing necessary manufacturing information from engineering department. 

Knowing whether material is on hand before starting. 

Study of previous planning to avoid congestion at machines. 

Replacing defective material. 

Reports showing work in process and work not started. 

Progress of orders through the factory. 

Creation of orders to build and assemble parts and groups. 

Maintaining daily schedule showing planning for next and succeeding days. 

Delivery of material to proper departments and machines. 

Reporting on material unobtainable from shops. 

Materials 

Checking material received against schedule, determining what is due or behind 
schedule. 

Maintenance of reports showing materials on hand. , 

Allowing sufficient time* in which to secure material. 

Supplying shortages of material. 

Responsibility for material lost or stolen. 

Knowledge of rough and finished stock with high and low limits. 

Reporting on material unobtainable from outside. 

Disposition of raw material not up to specification. 

Proper care and piling of rough and finished material. 

Maintenance of records as to receipts and withdrawals of material. 

Taking and figuring of inventories. 

Responsibility for requisitions for materials from which the products are made. 

Requisitioning and purchasing to replace defective materials not made by us. 

Receiving materials and checking them as to quality, specifications and quantity. 

Returning defective materials to vendors. 

Responsibility for requisitioning and purchasing factory supplies. 

Notifying departments as to arrival and purpose of materials received. 

Determining amount of material to carry. 

Maintenance of limits arranged for. 

Unpacking and placing material away. 

Relations and Incentives 
Study of relations between men and management. 
Wages and hours of labor. 
Incentives furnished the men. 
Light, heat, and sanitation. 
Co-operation of workers. 
Unfairness and favoritism. 
Discipline maintained. 
Rules governing conduct of the men. 
Enforcement of rules adopted. 
Investigation of complaints from men. 
Outlining constructive measures aimed to better relations. 



72 



INTRODUCING EFFICIENCY PRINCIPLES 



Executive Committee 



Mr. 



Mr. 



Mr. 



Mr. 



Mr. 



Mr. 



Mr. 



Line 



EngineeiiDg & Drafting 



Mr, 



Mr. 



Mr. 



Mr. 



Mr. 



T 



Planning 



Mr. 



Mr. 



Mr. 



Ml± 



Mr. 



Conditions 



Mr. 



Mr. 



Mr. 



Mr. 



Mr. 



Operations 
Mr. 



Mr. 



Mr. 



Mr. 



Mr. 



Material 



Mr. 



Mr. 



Mr. 



Mr. 



Mr. 



Relations & Incentives 



Mr. 



Mr. 



Mr. 



Mr. 



Mr. 



I Staff 



Chief of Stair Mr. 



Study Supervisor Mr. 



Planning 



Mr. 



Standards 



Mr. 



Bonus 



Mr. 



Analysis 



Mr. 

^ r~^ ^ 

StAdy 




Analysis 



The Engineering Magazine 

Fig. 7. Chart of Organization of Staff and Line, Sliowing Relations of Committees 

and Course Taken by Business 

Executive Committee 
In addition to controlling the work of the various committees, the executive com- 
mittee would also have charge of the following: 

Responsibility for the quantity of product manufactured. 
Creation of orders to build units. 

The selection and training of capable understudies for the various positions. 
Responsibility for advising shops sufficiently in advance of work to be made, 
to allow shop time in which to schedule and get out the same. 

A committee composed of the best material available should be 
organized to cover each one of the functions. These would be func- 
tional committees. The organization of the staff has already been 
outlined. Therefore, to weld the two forces, an *' executive committee" 
controlling both should be organized. This will mean one staff com- 
mittee, six functional committees, and the executive committee, or 
eight in all. Reference to the chart on organization of staff and line 
(Fig. 7), will show the relation between committees. 

It is, of course, as important to make a correct choice of personnel 
of the committees as it is to define their functions and responsibilities. 
They may be made up as follows. The explanatory words in paren- 



d. 



THE ORGANIZATION 73 

theses indicate the interest represented by each member of each com- 
mittee : 

Executive Committee 
General manager (administrative); chief designer (product); office manager (rec- 
ords and data); treasurer or accountant (finance); superintendent and assistant 
superintendent (shop); and efficiency engineer (betterment work). 

Engineering and Drafting Committee 
Sales manager (customers); chief designer (product); superintendent (shop); and 
efficiency engineer (betterment work). 

Planning Comimittee 
Superintendent (shop); purchasing agent (materials); foreman of department 
affected (individual department); and efficiency engineer (betterment work). 

Conditions Committee 
Superintendent (shop); master mechanic (mechanical work); labor boss (labor 
work); foreman of department affected (individual department); and efficiency en- 
gineer (betterment work). 

Operations Comiviittee 

Superintendent (shop) ; chief inspector (quality of product) ; functional supervisor 
(speeds and feeds, or jigs and fixtures, or foundry work, or belting, etc.) ; foreman of 
department affected (individual department); and efficiency engineer (betterment 
work) . 

Materials Committee 

Purchasing agent (supply of materials); stores keeper (custody of materials); 
foreman of department affected (individual department); and efficiency engineer 
(betterment work). 

Relations and Incentives Committee 

Superintendent (shop); foreman of department affected (individual department); 
representative of workmen (labor); and efficiency engineer (betterment work). 

An outhne of the procedure necessary to secure the desired results 
under this type of management is next in order. In the first place the 
relation of line with staff and staff with line is through the executive 
committee and therefore indirect in nature, making it necessary to 
arrange for some means of communication. A folder about 9 by 12, 
with suitably ruled and printed spaces on the outside and inside front 
cover for entering the subject, conditions found, betterment plan pro- 
posed, action taken by special committee, final action of executive 
committee, can be used as record and container of all papers relating 
to the subject. 

As to meetings, the staff committee made up of chief -of -staff and 



74 INTRODUCING EFFICIENCY PRINCIPLES 

his assistants may hold meetings at its own discretion, the functional 
committees at the call of the executive committee, and the executive 
committee when the press of work to be considered justifies it. 
Regular meetings are advisable if they can be held to advantage. Re- 
quests for investigations can originate in any committee. 

Functional committees at their meetings are to consider carefully 
the matters referred to them, to give them thorough discussion, to ar- 
rive at some decision for or against, to give reasons, and then to submit 
their findings to the executive committee. Upon receipt thereof the 
executive committee is to consider the matter carefully, and if the 
measures recommended are satisfactory they are adopted and then 
become binding on all line officials. If not satisfactory, the reasons are 
to be entered in the report and either returned to the functional com- 
mittee for further deliberation and action, or to the staff committee 
for further investigation. 

To show more clearly the procedure outlined, assume that the 
staff, through its Study and Standards divisions, finds inefl&ciencies in 
belting conditions all through the plant. It would make out a report 
showing the result of the investigation, along with a set of recom- 
mendations covering betterment, which would be supplemented by a 
report on standard belting practice. This would be sent to the com- 
mittee on Conditions. Here the matter would receive careful con- 
sideration, and after stating its views for and against, with reasons 
for a dissenting opinion, if any, the committee would submit its find- 
ings to the executive committee. The executive committee now 
having complete information from both staff and line, is in a position 
to pass intelligently on the procedure recommended. If its decision 
is favorable, the procedure then becomes binding. 

Assume further that the committee on Planning is not satisfied 
with the dispatching of work in certain departments. It can request 
an investigation from the staff committee. The procedure from this 
point would be the same as in the belting illustration. 

The chief -of -staff should be a member of each functional committee, 
to present the facts intelligently from his point of view. He should 
also be a member of the executive committee. The superintendent 
should be a member of the executive committee to present his side 
of the case. 

Committees should consist of three to five or seven members. 
Voting can be by majority rule, or the management can decide that 
all decisions must be made unanimous or they fail to carry. If a com- 



i 



THE ORGANIZATION 75 

mittee consist of four members, the general manager can be appealed 
to in case of a tie vote. 

The executive committee should employ a stenographer to attend 
all meetings, note the procedure, and issue in typewritten form the 
minutes of all meetings, these to be filed in the folders. 

All reports (which are to be numbered) covering work to be taken 
up should be sent to this stenographer, to whom is to be given the 
task of properly arranging them by subjects according to functions. 
With the chairman of the executive committee, he is to arrange for 
functional and executive committee meetings, with everything in 
readiness so as not to waste time or discuss side issues. As all reports 
and minutes covering the same subject are to be bound together, an 
excellent set of standard practice instructions will be accumulated 
covering every conceivable subject in connection with plant activities. 

A study of the possibilities in the type of organization above out- 
lined will show that it combines into one the Line, Committee, Func- 
tional, and Staff types. This is considered an important principle. 
Two men on opposite sides of the fence may disagree until they grow 
old, but if they can get together with a third party, there is every 
likelihood that compromise and action will result. Another principle 
has also been considered — every difference of opinion is due to faulty 
assumption somewhere, and in these conferences the searchlight is put 
on three times — once by the staff committee, once by a functional 
committee, and once by the executive committee. 

Finally, the advantage is that relations in and between all func- 
tions are so systematized that, regardless of the questions that may 
come up, a way is provided for considering them, in a comprehensive, 
prompt, and intelligent manner, with the least likelihood of ill feeling 
or antagonism being created. 



Chapter X 
THE ENGINEER, THE MANAGEMENT AND THE MEN 

THE engineer is now at the parting of the ways. He is ready to 
start, the practical work in connection with his betterment 
campaign. He has analyzed, diagnosed, prescribed, and ar- 
ranged the way for administering the treatment. Before he proceeds 
further he must do more than merely throw the machinery he has de- 
signed at the management and the men, trusting in their sincere belief 
in the whole proposition and their entire willingness to do all that is 
wanted. He must be sure that the digestive apparatus of the organi- 
zation is in good working order or he will find an excellent case of 
faulty assimilation. He knows that the application of the laws and 
principles of efficiency is largely a matter of "applied psychology" 
and it would be folly for him to ignore this fact. 

Relations are somewhat involved and look something like this — 

I Works Management | 
Company < I I r ^®^ 

( Efficiency Engineer J 

In other words the engineer must not only deal with the shop man- 
agement and it with him, but he must stand between the company on 
the one hand and the men on the other. He has no authority, cannot 
give orders, and what he does is, as one man termed it, "an appeal to 
reason." He realizes fully that the shop management is there to get 
results and that it wants nothing to interfere with this duty. Further 
he knows that the shop heads can get results in their way better than 
he can get them in their way, and he must therefore substitute some- 
thing that will enable them to get results in his way — a way which 
they know less about than he. 

Whether he wants to or not, the engineer must assume that everyone 
is "from Missouri" — that some will be open in their opposition — and 
with this as a basis he must arrange to lay before the company, the shop 
management, and the men such facts and data as will bring about a 

76 



ENGINEER, MANAGEMENT AND MEN 77 

belief in the work, a desire to assist, or at least an attitude of patient 
waiting before criticizing, until time has been allowed for the methods 
advocated to prove their worth. 

This is sometimes a very difficult task. Human nature is complex. 
The management may be and often is unreasonable as regards a num- 
ber of things, and because of this attitude the engineer is many times 
forced to change his plans, not because the change is a good one — it 
may in fact be suicidal — but because the management exerts a dom- 
inating influence and insists on varying the procedure to suit its own 
ideas. 

The Engineer 

The engineer must keep in mind certain fundamentals or he is 
likely to court trouble and perhaps failure. They are: 

1. He Must Find and Follow the Lines of Least Resistance. 
Nothing will convert the whole attitude of management and men 

from passiveness to full co-operation sooner than object lessons, and the 
engineer should study the places where gains can be made, within a 
reasonable time and at small cost. He should concentrate on these 
points without losing sight of his regular program. By this is not meant 
"hitting the high spots" as some have termed it. In every case where 
this has been done it has been the management and not the engineer who, 
through impatience for results, has forced it. This is always to be de- 
plored and is altogether unnecessary. / do claim, however, that because 
so much of this work is psychological in nature, it is legitimate to con- 
centrate on places which will yield quickest returns, for the sake of the 
favorable impressions that will follow. 

2. He Must Work on the "Exception" Principle. 

The engineer must be a master in the art of detecting where to 
throw his energies. He should study to determine what work he can 
put on the shoulders of his assistants and on the management, keeping 
in his own hands the difficult and the complicated. He should keep 
in close touch with the situation to enable him to tell what foreman or 
man, because of opposition or failure to co-operate, needs the most 
attention and it should be his duty to try and convert them — to make 
them see the merits in the methods advocated. 

3. He Must Arrange to Get the Best Results from the Men Under 
His Supervision. 

He must, in other words, create a standard and get his assistants to 
measure up to it. Consequently he draws up the following instructions : 



78 INTRODUCING EFFICIENCY PRINCIPLES 

Instructions for Staff Members 

In attaining the results that all have a right to expect from the work that has 
been undertaken by us, considerable depends upon the relation between staff members, 
our relations to others about us, and the manner in which the various duties are 
performed by us. This feature of our work is so important as to warrant an outline 
of standard practice. 

We have neither status nor authority. We have no right to give any orders. We 
cannot force an acceptance of our views. We stand between the management on the 
one hand and the men on the other. Some with whom we will deal will be for us. 
Many may be open in their opposition to our plans. What we accomplish will be 
through and with the consent of the existing organizations. 

Our problem is therefore complex, although not at all discouraging. Our approach 
must at all times be indirect in nature. A consideration of a few essentials is therefore 
necessary: 

1. We must be extremely tactful in all our dealings with those about us. A genius 
lacking diplomacy in this work will accomplish less than the man of ordinary ability 
with an abundance of tact. 

2. We must play a waiting game. We must recognize first, last, and all the time 
that a workman or foreman may consider his opinion equal or superior to ours. If, 
after submitting what we consider proof, we find opposition to our plans, we must 
take a new tack, secure additional proof, present it in a different way, and work 
the. thing around indirectly. If we are right time will prove it. If wrong the less said 
the better. 

3. Personal bias must be eliminated. Ill temper must never be shown, no matter 
how great the provocation. Nothing will tip over the structure we hope to build 
more quickly than losing one's head. 

4. Never indulge in destructive criticism. If we cannot recommend something 
constructive, say nothing at all. 

5. Apply the WHY to everything. The field here is a good one. Surface indica- 
tions may not point to much, but by digging hard and applying the WHY, some- 
thing substantial will result. 

6. We must not appear too serious, as this is a negative attitude. A smile and 
a cheery word will assist where a frown would prove harmful. 

7. Do not go to a foreman and say — " This is the way to do it." Approach him 
in this manner — "Don't you think this would be a good way to do it.^^" It makes a 
difference which method is used. 

8. We must often let others have the credit for what we may evolve. We must 
keep out of the limelight. Others want the "Spot" turned on them occasionally. 
Imagine the feeling of a foreman who after getting the germ of an idea from one of 
us, and after developing it with us, is allowed to present it to the management as 
his. Let us place our thunder where it will occasionally be stolen. 

9. We must never so conduct ourselves as to convey the impression that we 
are walking libraries of valuable knowledge. 

10. Never become discouraged. If an obstacle cannot be pushed over, try and 
walk around it. If this is impossible, dig under it. It will give in time, as all ob- 
stacles do. 



ENGINEER, MANAGEMENT AND MEN 79 



MATTERS TO BE CONSIDERED 


SUBJECT 


JOB BLDG. FOREMAN 


BRIEF OUTLINE OF EXISTING CONDITIONS 


SUGGESTED METHOD OF BETTERMENT 






DATE MADE SCHEDULED . ^„ 
MADE OUT . FOR I>ATE 
OUT BY 



The Engineering Magazine 

Fig. 8. Memorandum of Matters to be Considered 

11. Do not discuss plans for betterment with shop men until these plans have 
been talked over with the chief -of -staff and his approval secured. 

12. We must commit ourselves to nothing that w^e are not absolutely sure about. 
We must know what we want and why we want it. Mere opinions dont count 

13. Getting results cannot be. secured in an office. The leads are in the sJwp. We 
are not gifted with second-sight, so our place is where the leads are. 

14. Ignore what may seem to be watching on the part of others as regards how 
much work we do, when making investigations. If we are doing our duty, ice can 
well afford to disregard what others think. 

15. Never rely on memory. Make notes. Don't be afraid of using a pencil and 
note book in the shop. 

16. As we think of new avenues of study, make out a card ''matters to be con- 
sidered." (See Fig. 8.) ^ ^ 

17. Verbal reports will receive no consideration. Each staff man is to put his 
findings in writing, submitting same to chief-of-staff . 

18. Never indidge in personalities. Everyone is right as he sees things. If we 
lack the ability to change a man's point of view, don't let us attempt to cover up by 
pointing out the failings of another in none too careful language. 

19. Be square with everyone. Taking an idea from someone else and using it as 
our own will not be tolerated. 

20. If things go wrong, first analyze to find out where we were at fault before 
criticizing everyone and everything around us. 

21. "The influence of object lessons on those about us should always be kei)t in 
mind, as they will do more towards changing the attitude of those who may oi)pose 
us than anything else. Dont use a trumpet, however. 

22. By all means be friendly with everyone, whether foreman or workman. It 



80 INTRODUCING EFFICIENCY PRINCIPLES 

costs nothing and will mean much to us in the way of results. // we cannot ruh people 
the right way toe should give way to those who can. 

23. Never go to a workman and flash a stop watch without first acquainting him 
with our purpose. This the man is entitled to. 

24. The hours to be observed are 8 until 12, and 1 until 6. Taking time off must 
be with consent of chief-of-staff. Jokes and stories are to be reserved until the noon 
hour or after 6 p.m. We have a large task ahead of us, requiring our undivided attention. 

25. Staff members must be willing to subordinate their particular desires or pet 
theories to the good of the work as a whole. We cannot all have our own way. 

26. Never criticize others to shop men or management. It may be passed along 
the line, with embellishments at each repeating. 

27. A snap to the eye and a barb on the tongue are things to avoid as they can 
cause considerable harm. 

28. Mingle with the men and foremen as much as possible. This makes for a 
healthy spirit and will lead to much in the way of new avenues of investigation. 

29. Study each move made as a chemist would the completed experiment. Make 
each move the basis for the next one. Mistakes will happen, but there is no excuse 
for two of the same kind. 

30. Don't call a man down. It is not our function. 

31. Remember that we are here to lead, not drive or force. . 

32. Never jump at conclusions. They may be wrong. 

33. If criticized, present your argument in a courteous manner, then stop. Do not 
fight back. 

34. Never air your personal opinions about the ability or worth of those about 
you. It will only mean trouble. 

35. Review the above carefully. Make the various points brought out a part of 
your everyday work. The results will surprise you. 

The chief-of-staff is here to help each staff member secure the greatest results from 
the efforts exerted. Give him the opportunity. 

The Engineer and the Management 

So much for the engineer himself. How is he going to handle the, 
Management.^ The factors are: 

I. The procedure outlined. 

II. The order in which the work should be undertaken. 

III. The time element. 

IV. Co-operation of executive management. 
V. Co-operation of shop management. 

I. The Procedure Outlined. The engineer should take up with 
the management the general procedure as he has outlined it. The time 
to thrash out the details is before the real work is started and not after 
the start is made, for nothing so hampers the securing of results as re- 
peated changes of front. The management will most likely have 
many preconceived notions which may be good, bad, or indifferent. 



ENGINEER, MANAGEMENT AND MEN 81 

The engineer must test to find out just what these notions are so he 
can combat them if necessary, or vary his procedure to suit when the 
management *'hits a bull's eye." Many times the management wins 
out over the engineer because the engineer presents a weak case, or a 
half-baked scheme with which he is not entirely familiar himself and 
which he cannot explain to the entire satisfaction of the management. 
If, however, his outline of procedure has been based on a careful 
analysis and diagnosis, he need worry but little about the attitude of 
the management, who by comparison is possessed of incidental informa- 
tion, which will not materially influence the case that the engineer 
can so admirably present. 

II. The Order in which the Steps Should be Undertaken. 
In any plant there are a number of departments to which the methods 
can be applied. To each the work to be undertaken will bear a definite 
relation. Such difference as may exist in the infiuence exerted by the 
methods installed will be of degree only. 

A plan of procedure should therefore be drawn up which will con- 
sider all factors, in such a manner as to result in logically selecting 
the points where a start should be made and deciding what the selec- 
tions to follow should be. A proper sequence should be kept in mind 
at all times. 

There are several ways of beginning activities: 

1. Starting with the plant as a whole, beginning with study, then 
introducing planning, standardizing conditions and operations, and 
finally rewarding the workers in proportion to the individual efficiency. 

2. Selecting such departments as indicate opportunities for ef- 
fecting the greatest savings. 

3. Beginning the work in starting departments, as for example, 
in machine works, the foundry, and smith shop. 

4. Selecting places where the inffuence on other departments will 
be most beneficial. 

5. Beginning where the work done bears a definite relation to the 
measures contemplated. 

6. Starting where indicated by a consideration of company policy, 
or by the effect on men or foremen. 

Plan No. 1 can be eliminated, for while it would be productive of 
results in the end, the progress would be slow at first, without notice- 
able results, and would tend to prove discouraging to men and fore- 
men. The other plans mentioned a^re important, and no start should 



82 INTRODUCING EFFICIENCY PRINCIPLES 

be made in any department until the effects of the various methods 
of beginning have been fully considered. It is obvious that the ideal 
start would be in a starting department, showing the greatest oppor- 
tunities for gains in the quickest time, exerting a decided influence for 
betterment on the other departments, and having a definite relation 
between the work done there and the installation as a whole. 

Therefore to block out the procedure in an intelligent and com- 
prehensive manner, a list of departments should be made out, showing 
the product made in each, approximate quantities and capacities, 
force employed, and source and destination of product. Each depart- 
ment should be studied separately and the following points given 
careful consideration: 

1. Sequence of work, by which is meant travel through plant. 

2. Co-operation of department head. 

3. Nature of betterment work which should be done. 

4. Results possible — whether fair, medium, good, or excellent. 

5. Influence of work to be done on other departments. 

6. Men employed. 

1. As to Sequence, the departments should be classified as: 

a. Originating departments, such as foundry and smith shop. 

b. Preparatory departments, such as planer, lathe, and drill de- 
partments. 

c. Assembly departments, where sub-assemblies are built and 
finishing work done previous to erection. 

d. Erection departments, where units are put together. 

2. As to Co-operation of Department Heads, each one should be 
classified under one of the following heads: 

a. Active in co-operation and easy to handle. 

b. Active in co-operation and hard to handle. 

c. Passive in co-operation and easy to handle. 

d. Passive in co-operation and hard to handle. 

e. Likely to oppose. 

3. Under Nature of Work to be done, state whether planning, 
conditions, operations, bonus, or special features. 

4. As to Results Possible, classify departments under fair, me- 
dium, good, or excellent. 

5. Regarding Influence, the following will illustrate the manner 
of arrangement: 



i 



ENGINEER, MANAGEMENT AND MEN 



83 



Influenced by 


Dept. being 
considered 


Influences 


E and F 


A 


G 


H 


B 


E 


K 


C 


D 



6. Finally, make a list of men in each department. 

The essentials are now a matter of record. To reach definite con- 
clusions, set down according to sequence of work, by classes of depart- 
ments (see No. 1), the points regarding each department as follows: 



Dept. 


Co-operation 
of Dept. Head 


Handling 
Dept. Head 


Plan of 
Procedure 


Prospects 


Influences 


Men 


A 


Active 


Hard 


Operations 

Planning 

Bonus 


Medium 


K-L-M 


55 


B 


Opposed 


Hard 


Conditions 


Excellent 


F 


30 


C 


Passive 


Easy 


Conditions 
Operations 
Planning 
Bonus 


Good 


M-N-O-P 


100 


D 


Passive 


Hard 


Conditions 


Excellent 


E-F-G 


40 


E 


Active 


Easy 


Planning 


Fair 


A-B 


60 


F 


Passive 


Hard 


Operations 

Planning 

Bonus 


Good 


M-K-L 


50 



Recapitulation — Departments , 

Men 

Co-operation. 

Handling 

Prospects 



6 
335 
2 active, 3 passive, 1 opposed 
4 hard, 2 easy 
2 excellent, 2 good, 1 medium and 1 



fair 



It is obvious as one reviews the above that department C is the 
place to begin work. The largest number of men are involved, four 
departments are influenced, the prospects are good, the plans contem- 
plate working along the largest number of lines, and while the foreman 
is passive, he is nevertheless easy to handle. Department B would 
come last, for here we have a foreman opposed to the work who 
would be hard to handle, a small number of men to consider, influ- 
encing but one department, with one element of betterment to take 
care of. Department D is in about the same class, so we can put this 
as fifth in order. 

We have therefore eliminated three departments. Of the others. 



84 INTRODUCING EFFICIENCY PRINCIPLES 

A, E, and F, analysis will show that Department A should come second. 
The foreman, although hard to handle, will be active in his co-operation; 
and while the prospects are medium, the number of men and the plan 
of procedure are worth considering as well as the departments influ- 
enced. Study of E and F will show that F should be third and E 
fourth. Consequently as to these six departments, the program is as 
follows : 

First Department C 

Second " A 

Third " F 

Fourth " E 

Fifth " D 

Sixth..., " B 

After planning the campaign, study is of course the first step. It 
would be general in character at first, to serve as a basis for planning 
and for standardizing conditions and operations. Men could be put 
on bonus to begin with, but the outcome would be dissatisfaction, no 
results worth mentioning, and a discrediting of the whole proposition 
simply because the way has not been properly paved for the attain- 
ment of the standards. 

The first consideration after pointing out higher ideals and ar- 
ranging for a campaign of study, is to begin the installation of planning 
and dispatching methods. It will take time to get these methods in 
proper working order, for the change from planning on short notice, 
to planning days and weeks ahead — not in a general way, hut as to the 
details — is a process evolutionary in nature, starting in a crude way 
and developing into an efficient and orderly control of manufacturing. 

The idea of subordinating the individuality of each department 
head to a central function is at first distasteful. The planning is for 
a time open to criticism, for in getting all to look ahead, items are often 
forgotten or improperly planned. The eventual outcome however will 
appeal to all, who will say as did one shop Superintendent — ''it has 
simply revolutionized our shop." 

The aim at the beginning is to furnish the shops with: 

1. Better dispatching of materials and jobs. 

2. A good start towards better conditions. 

3. A start towards standardization of all operations. 

These are the best means for getting the management and men 
to take every advantage of betterments resulting from the program 



ENGINEER, MANAGEMENT AND MEN 85 

decided upon. When planning is on a firm basis, with conditions 
bettered, more careful studies can be started for standardizing opera- 
tions as to procedure and time, putting the men on schedules, paying 
bonus, etc. 

III. The Time Element. The engineer should make every effort 
on the start to anticipate the criticism that may come later on, as to 
the time needed to install the methods. Few executives have any con- 
ception of the time necessary to install the various steps of the program, 
and while it may not be considered good pohcy to "scare" the client 
before w^ork is even started, it is not good business to make him feel 
or take for granted that results will be quickly secured when the 
engineer knows that this is quite impossible. This is simple deceit. 

Few appreciate, for instance, the w^ork involved in making time 
and motion studies, nor the immense amount of valuable information 
they contain. Mystery and secrecy must be avoided. The work 
requires good judgment and an unbiased mind. It must be started 
slowly and every step must tell. 

The right men must be selected when starting these studies. The 
work must be carefully analyzed, the best method of procedure under 
existing conditions determined upon, the tools listed, delays noted, 
and a number of studies made to arrive at a fair average. 

As the work progresses one of the most important features is the 
investigation of complaints from the men and foremen concerning 
times and conditions. They are close to the details, and their interest 
when fully aroused wdll result in their unwillingness to stand for ob- 
stacles in the way — an excellent lead for future betterment. Then there 
is the matter of securing and analyzing data as to delays which the 
management can control — a very productive source of information. 
This must all be investigated, responsibility placed where it properly 
belongs, and allowances made to men and foremen for what they 
cannot control. 

After records are made showing the efficiency of men, machines, 
and operations, they must be carefully analyzed to ascertain where 
standards have not been realized. Failure to attain standards means 
that inefficiency is still at work, and steps must be taken to find out 
why, as well as to consider and provide the means necessary to elimi- 
nate the causes. 

Another field lies in the analysis of material rejections about the 
plant, for when considered according to causes, men, product, etc., 
excellent chances to increase efficiency will be discovered. 



86 INTRODUCING EFFICIENCY PRINCIPLES 

To get the results possible the management must furnish moral 
support and active co-operation. The work is not easy, for after 
standardizing there comes the task of convincing the shops that the 
standards can be realized, furnishing them object lessons, and pointing 
out the way to greater things. 

The men will feel that they are not getting enough out of it, and 
the task is to point out to them that the management assumes all 
the responsibility at first, the men none; that putting in a staff of men, 
improving conditions, bettering the planning, and taking the time to 
study carefully all operations, is very costly; and that as soon as the 
work is well under way the men can earn a great deal more than they 
can secure elsewhere. 

This all takes time, the gathering of considerable information, and 
careful study and analysis. The results, however, are so great as to 
make the cost a comparatively insignificant item. 

IV. Co-OPERATION OF THE EXECUTIVE MANAGEMENT. The in- 
troduction of scientific management in a plant is not the work of a 
day. It is a work requiring the consideration of countless details, 
unimportant in themselves perhaps, but having a decided influence 
on the proposition as a whole. It requires tact, patience, and a strong 
determination to see the thing through to the success possible, regard- 
less of where it hits. It requires the expenditure of money — more 
than many manufacturers are willing to spend, because of their failure 
to see the insignificance of the cost compared to the savings possible. 

Progress will be slow at first. Men will not have the confidence 
in the management that is necessary, and steps will have to be taken 
to show them that the management means business and intends to 
play fair. During the early stages there will be many things which will 
not seem to have any bearing on the problems, although a part of the 
foundation. There will be criticisms of many things undertaken — 
well meant and logical from the particular viewpoint. There will be 
suggestions aimed to vary the procedure, although the plans decided 
upon should be strictly adhered to. The tendency will be to take 
"short cuts" instead of following the seemingly longer plan outlined. 

The management must stand back of the work in its various de- 
tails. The methods are not experiments, and should be installed in the 
way that past experience dictates as the most efficient. There must be 
no wavering, for nothing communicates itself so quickly to the working 
forces as doubt and indifference. Failures are due not so much to the 
obstacles in the way as to the lack of determination to overcome 



ENGINEER, MANAGEMENT AND MEN 87 

them. It is difficult and trying to the men responsible for the intro- 
duction of efficient methods at one time to sustain the faith and courage 
of the management and at another to curb its impatience for results. 

V. Co-OPERATiON OF THE Shop MANAGEMENT. The engineer 
must get in touch with the members of the line organization, often 
doing trivial things which have no real bearing on the object in view, 
in an effort to fix their attention on higher and better things. The 
next step is to arouse interest by raising a doubt as regards the success 
of the existing methods. 

This will get them to thinking — noticing the places where im- 
provements can be made, thus paving the way for the next step — desire. 
This can be accomplished by pointing out what has been done for 
others in varied lines; what such gains would mean to them and to 
the company; what stands in the way, etc. Then with the plan of 
campaign as mapped but in the eighth and ninth chapters fully ex- 
plained, the details so arranged that everyone's work can be outlined 
in a specific way, efforts can be concentrated on the task of pointing 
out the advantages of the methods designed to enable the line officials 
to apply the principles of efficiency; the importance of the line officials 
in the scheme of things, and how with much less expenditure of time 
and energy they can accomplish infinitely more than they are doing. 

In the early stages of the work, the tendency will be to become 
discouraged, to criticize, to want to go back to the old ways, and object 
lessons must be pointed out. The time element must be considered 
and discussed. The basis for their fears must be studied, pessimism 
must give way to optimism, the meaning of each step must be pointed 
out, and above all they must be assured that the work is in every 
sense a man's task and worthy their best efforts. 

The Engineer and the Workmen 
It is most essential that the engineer give serious consideration to 
the task of securing the support of the men in the plant. This may 
not be an easy task, but it is not impossible by any means. The workers 
are going to have an enormous amount to do with the new methods, 
and their actions and attitude can materially influence success or 
failure. 

In the first place a plant "Efficiency Club" should be organized 
by the engineer, to hold at least two meetings each month, and it 
should be made known that the workmen are most welcome as mem- 
bers and that it is going to be their club. Various topics can be dis- 



88 INTRODUCING EFFICIENCY PRINCIPLES 

cussed at the meetings, lectures can be arranged for, all of which will 
do considerable towards creating a favorable impression. 

Another good plan is to give noon-hour talks, one day per week, 
to such workmen as desire to attend, explaining the practical features 
of the work, discussing local applications, etc. 

Still another excellent means of creating sentiment in favor of the 
methods is to insert in the pay envelopes of the men brief discussions 
of the various features of the methods. The stop watch — the relation 
of conditions and operations to standards — planning and its impor- 
tance — how standards are made — relations between men and manage- 
ment — the bonus plan — the principles of efficiency, are topics which 
can be considered. The following is a sample of one presentation 
which was a printed 3 inch by 4 inch booklet, showing the workman's 
name on the cover :^ — 

The success of this Company depends upon the success of each one employed by it. 
The success of each one depends upon the success of the Company. Our interests are 
therefore mutual and can receive proper attention only through co-operation. 

We are undertaking the task of increasing the efficiency of our plant. By this we 
do not mean speeding up and driving our workers. We mean that we want to eliminate 
waste, whether in the form of time, energy, or materials. Our aim is not to stimulate 
strenuousness, for this is not efficiency. 

Strenuousness means work harder and produce more. Efficiency, on the contrary, 
means work less hard and produce more. As an example: If you have to walk six 
feet to the supply of material, you can walk twice as fast and produce more through 
strenuousness. If, however, conditions are improved and the supply placed three 
feet away, you can accomplish more through efficiency, without the expenditure of 
additional energy. 

You want steady employment at as high wages as you can get. We want as high a 
production at as low a cost as is possible. This condition can be brought about if we 
will work together in the manner that will be indicated to us by a careful and con- 
structive investigation of the details of the business. 

What we want to do is to eliminate: 

1. Waste due to faulty planning of work. 

2. Waste due to inefficient shop conditions. 

3. Lost motion in the operations themselves. 

Perhaps you do not get material as you should; you are delayed through no fault 
of your own; machines may not be working as they should; tools supplied you may 
mean unnecessary work, with the residt that you cannot do yourself justice. 

Our efforts will first be directed towards improving the planning of the details 
in connection with production. In theory, we will follow the same method as is used 
by a railroad company in scheduling and dispatching its freight and passenger trains. 
In practice, it will mean working on the right thing, in the right way, at the right time. 
This you can see will mean better deliveries, satisfied customers, less rush and hustle 



THE ORGANIZATION 89 

in the factory, better working conditions, plenty of work, and, as a result, you will 
share in the success that will naturally follow. 

You can assist us to a greater degree than you imagine. Look about you. Study 
what you are doing. Do you see a better way to do things? Can you suggest an im- 
provement anywhere? Remember it is the little things which count, so do not hold 
back because the matter seems too small to talk about. 

Remember this also. We want a force of well-paid, satisfied, willing arid progressive 
workers. All we ask is that you give those assigned the task of studying our business 
your support and co-operation. They will help us find waste and inefficiency and 
assist you in eliminating it. 

There should of course be the personal touch between the work- 
men and the engineer. Getting the men to talk of their ambitions and 
desires, the rough places in their lives, their criticisms, suggestions, and 
complaints, will do much to enable the engineer and his assistants to 
do considerable tow^ards securing the good will and co-operation of the 
workers. 

A reference library should be made a part of the arrangement. 
All the best books and magazines on efficiency and management 
should be kept on file and loaned to the men. The literature on the 
subject is becoming extensive both as to principles and applications. 
Intelligent w^orkmen and foremen will not only be glad to read the 
books, but the educational process will be a mighty factor in the attain- 
ment of maximum efficiency. 



Chapter XI 
THE TIME STUDY 

IN diagnosing the results of his examination as outhned in the 
seventh chapter, the engineer found plenty of evidence of in- 
efficient operations and conditions. To secure greater efficiency he 
first designed the machine necessary to produce results, then he con- 
sidered the factor of co-operation. What is his next step.^ 

In a casual, accidental sort of fashion he can study by general ob- 
servations, where surface indications indicate inefficiency. But sup- 
posing there are no surface indications? He knows from his past ex- 
perience that two facts stand out so prominently as to admit of no 
argument : 

1. Men can accomplish considerably more than they do. 

2. As business is usually conducted, managements do not know 
what constitutes the best a man can do. 

Planning will be outlined to enable the plant to work on the right 
thing at the right time. Not necessarily in the right way, however. Plan- 
ning answers the what and when. The engineer must consider the how 
as well. 

This can be done only by stop-watch analysis of time and motion. 
As a preliminary outline of factors, and to show the comprehensiveness 
of the method, the following steps in making studies may be defined: 

1. Resolve the work being studied into its various elements and movements. 

2. Determine by the stop-watch the elapsed time spent in each element. 

3. List the particulars concerning each element, with the time spent thereon, 
on sheets prepared for the purpose. 

4. Note on this study all delays, useless motions, faulty conditions, and what- 
ever may be found in the way of ineflSciency. 

5. Note such delays and interruptions as are unavoidable. 

6. Study the rest and fatigue of the worker. 

7. Analyze the facts secured, determining the amount of preventable waste in 
time, and ascertain the efficiency. 

8. Note the best elements or sets of motions on any kind of work for duplication 
in other lines. 

90 



THE TIME STUDY 91 

9. From the data compiled, standardize the operations as to sequence of ele- 
ments, and prescribe as far as possible the procedure as to the motions. 

10. Set opposite each element or set of motions an allowed time which will con- 
sider rest, fatigue, and unavoidable delays. 

11. Analyze the facts concerning waste and inefficiency, and outline constructive 
measures to correct the faults found. 

12. Index the facts secured so as to file them, for study and reference purposes 
with like information. 

We are now in possession of facts covering the elements to be con- 
sidered, the functions of time studies, and the general plan of making 
them. A further refinement is next in order. A machine is in itself 
a lifeless thing, capable of doing only what man makes it do. The 
human, however, is altogether different, and no consideration of study 
methods can be complete without an analysis of the variables in both 
the worker and the work done. 

As regards the work there are: 

Size of unit to be handled. 

Weight of unit to be handled. 

Position of unit to be handled. 

Method of handling. 

Length of travel. 

Position of worker. 

Rapidity of motion. 

Exertion called for. 

Automaticity of motion. 

Facilities furnished. 

I have repeatedly called attention to the variables of the worker 
which have as yet received little or no consideration from the industrial 
world. They are as follows: 

Concentration. — Focusing the mind on one thing. 

Reason. — Ability to draw conclusions. 

Interest. — Exciting attention in a particular thing. 

Judgment. — The faculty of reasoning logically. 

Energy. — Strength and power exerted. 

Imitation. — The inclination to follow the lead of another. 

Imagination. — The faculty of forming images in the mind. 

Attention. — Application of the mind to a particular thing. 

Loyalty. — Faithful acceptance of a trust. 

Memory. — Power of retaining and reproducing mental impressions. 

Initiative. — ^The power of commencing something without guid- 
ance. 



92 INTRODUCING EFFICIENCY PRINCIPLES 

Pleasure in Work. — The faculty of being satisfied with one's work. 

In connection with the practical work of making time studies we 
can divide the work into three classes and then consider each one 
separately. 

First Class, or General Studies 
The first class would be used in cases where it is wished to deter- 
mine the exact time spent on a job. The watch is started when the 
work is started, it is stopped for delays and irregularities, using the 
accumulating stem at the left of the winding stem, so as not to set 
the hand back to zero, and started again when work is resumed. Upon 
completion of the study the watch will show the net time spent in 
actually making the work. It will not, however, give any data as to 
the time taken by each step, nor the wastes in any of the steps. The 
readings would look about as follows: 

Pieces Minutes 

First.. . 85.5 

Second 70.8 

Third ... 62.6 

Fourth 90.7 

Fifth 50.9 

Average 72 . 1 

Low , 50.9 

High 90.7 

Second Class, or Operation Studies 

The second class of studies are much more valuable than the first 
class. In this class the w^ork is to be divided into its logical steps and 
each step listed on sheets along with the elapsed time for each. 

These studies can be made in two ways: 

1. By listing delays and faults as they are noticed. 

2. By throwing out all such information and simply recording 
net working time. 

I prefer the first method, for it is the analysis of such data that in- 
dicates the measures necessary to eliminate inefficiency. 
There are also three ways of using the watch: 

1. Snapping the hand back to zero after each reading. 

2. Upon completion of each step, stopping the watch with the 
accumulating stem, reading the time, and then starting again. 

3. Reading the time after each step without stopping the hand. 
Personally I prefer the third method, for in this way no time is 



THE TIME STUDY 93 

lost in stopping and starting the watch. An operator soon learns to 
read the watch accurately without stopping it. 

The following studies will illustrate the method of arranging op- 
eration studies in permanent form: 



Study No. 1 — Machining Operations 

Minutes 

A Waiting for piece 6.2 

X Pick up and place in machine 14 

X Center 2.5 

X Rough turn 7.1 

X Finish turn 6.5 

B Getting cutting tool to replace wrong one supplied 3.2*^ 

X Face one side 5.1 

X Face other side 4.9 

C Grind cutting tool 5.7^ 

X Rough turn taper 6.5 

X Finish turn taper 7.2 

X Form radius 5.5 

D Having belt repaired 12.5 

X Forming edge 3.1 

E Waiting for foreman for instructions 5.7" 

F Getting cutting tool 3.6- 

X Cutting first groove 9.2 

G Grinding cutting tool 5.1 

X Cutting second groove 9.7 

X Cutting thread 10.2 

H Getting chains 6.1*^ 

I Getting leathers to place between chains and work 4.2" 

J Delay due to poor working of pneumatic hoist 5.1^ 

X Piece out 3.2 

Total Minutes 139.5 

Total of necessary operations (marked X) equals 82.1 minutes. 
Efficiency therefore is 

82.1 

— = 58.8 per cent. 

139.5 

The waste or inefficiency of 57.4 minutes or 41.2 per cent is divided as follows: 
Due to planning Minutes Per Cent 

A Waiting for piece 6.2 

B Getting cutting tool to replace wrong one 3.2 

E Waiting for instructions 5.7 

F Getting cutting tool 3.6 

18.7 32.6 



94 INTRODUCING EFFICIENCY PRINCIPLES 

Due to conditions Minutes Per Cent 

C Grind cutting tool 5.7 

D Having belt repaired 12.5 

G Grinding tool 5.1 

J Poor working hoist 5.1 

28.4 49.5 

Due to man 

H Getting chains 6.1 

I Getting leathers 4.2 

10.3 17.9 

Comments by Person Making Study 

Under planning: the man should not have to wait for material; the right cutting 
tool should have been supplied him, and the planning should contemplate making 
the instructions and prints so clear that the foreman would not have to be called 
upon. 

Under conditions : tools should be kept properly ground and ready for use. Delay 
due to the belt failure should have been anticipated. This also applies to the delay 
due to poor working of pneumatic hoist. 

As regards man: he should have seen to it that he had chains and leather when 
cutting his second groove or thread. If he tried to get them and failed the delays 
would be chargeable to faulty conditions. 

P. L. Jones. 

Time Study No. 2 — Moulding Operation 

Minutes 

X Laying board and pattern 3.4 

X Placing drag 2.0 

A Getting riddle from another workman 3.0 

X Riddling sand 2.5 

X Shoveling heap sand 5.2 

X Ramming drag 20 . 6 

X Placing bottom board 2.1 

B Looking for clamps 6.2 

X Clamping and rolling 5.1 

C Waiting for cope side of pattern to be brought in 9.4 

X Placing cope side of pattern 1.4 

D Waiting for cope 6.7 

E Waiting for carpenter to cut bar ; 8.3 

X Placing cope 2.1 

F Looking for gaggers 6.3 

X Placing gaggers 4.2 

X Ramming cope 12.4 

X Lifting cope and placing 4.1 

X Finishing mould 27.3 

G Waiting for cores 7.3 



THE TIME STUDY 95 

Brought forward (minutes) I39 q 

H Filing cores 4 y 

X Setting and securing cores 12 7 

X Closing r^ I 

X Clamping and weighing 8,3 

Total 172.4 

Total of necessary operations (marked X) equal 120.5 minutes. 
Efficiency therefore is — 

120.5 

= 69.8 per cent. 

172.4 

The waste or inefficiency of 51.9 minutes or 30.2 per cent is divided as follows: — 
Due to planning Minutes Per Cent 

C Waiting for cope side of pattern. 9.4 

D Waiting for cope 6.7 

E Waiting for carpenter 8.3 

G Waiting for cores 7.3 

31.7 61.0 

Due to conditions 

B Looking for clamps 6.2 

F Looking for gaggers 6.3 

H Filing cores 4.7 

17.2 33.1 

Due to man 

A Getting riddle 3.0 5.9 

Comments by Person Making Study 

Regarding planning: pattern and cope with bar properly cut should have been 
on the moulder's floor when he was ready for them. This also applies to the cores. 

Under conditions: the moulder should be kept supplied with clamps and gaggers. 
Cores should be so made as to require little or no filing. 

The man should be responsible for such tools as are given to him and not allowed 
for time spent in getting same from other workmen. 

P. L. Jones, 

Time Study No. 3 — Structural Shop Operations 

Riveting ^-Inch Countersunk Rivets by Hand 

Minutes 

X 5 rivets 7.0 

X 10 rivets 12.0 

A Rivets not hot enough 2.0 

X 10 rivets 6,0 

X 5 rivets 4.0 

X 5 rivets 3.5 



96 INTRODUCING EFFICIENCY PRINCIPLES 

Brought forward (minutes) 34 . 5 

B Waiting for rivets 2.4 

C Reaming 5 holes 3.0 

X 10 rivets 11.0 

X 10 rivets 7.0 

D Reaming 3 holes 2.5 

X 10 rivets 7.2 

X 5 rivets 3.5 

E Rivets not hot enough 2.2 

X 10 rivets 8.0 

X 10 rivets 6.5 

F Waiting for rivets to heat 7.4 

X 10 rivets 6.7 

X 10 rivets 7.1 

G Reaming 5 holes 3.5 

X 5 rivets 4.0 

X 10 rivets 6.1 

H Reaming 6 holes 3.5 

X 10 rivets 6.7 

Total 132.8 

Total of necessary operations (marked X) equals 106.3 minutes. 
Efficiency therefore is 

106.3 

= 80 per cent. 

132.8 

The waste or inefficiency of 26.5 minutes or 20 per cent is divided as follows: — 
Due to planning Minutes Per Cent 

F Waiting for rivets to heat 7.4 28 

Due to conditions 

A Rivets not hot enough 2.0 

B Waiting for rivets 2.4 

C Reaming 3.0 

D Reaming 2.5 

E Rivets not hot enough 2.2 

G Reaming 3.5 

H Reaming 3.5 



19.1 72.0 



Comments by Person Making Study 



Under planning: rivets should be supplied in advance so that there will always 
be rivets in the furnace. 

Regarding conditions: rivet boy at furnace should be instructed to not throw 
rivets to gang that have not been properly heated. The reaming should be done by 
a separate gang, which should follow up the riveting gang. 

P. L. Jones. 



V 

I 



THE TIME STUDY 97 

Time Study No. 4 — Woodworking Shop Operation — Tenoning 

Minutes 

X Running 33 . 03 

X Changing head 33 . 72 (l change) 

A Getting work .19 

B Getting material to replace spoiled 9 . 80 

C Taking work away 3 . 12 

X Oiling 1 . 08 

D Looking over next load 3 . 12 

E Changing trucks 2 . 44 

F Asking for next job 9 . 82 

X Changing for length 5.90 {5 changes) 

G Waiting for job ticket 12.52 

H Interrupted by rail sticker man 1 . 08 

X Measuring rail 2 . 23 

X Marking rail 1.26 

I Getting drink ....'. .84 

J Getting chalk. : 3 . 68 

K Removing sliver from hand .98 

L Talking to Superintendent 6.91 

X Changing for thickness 1 . 98 (1 change) 

X Changing belt for speed 1 . 30 

Total time 135 . 00 

Production, 725 rails running two at a time. 

Total of necessary operations (marked X) 80.50 minutes. 

Efficiency is 

80.50 

= 59.6 per cent. 

135 ^ 

The waste or inefficiency of 54.50 minutes or 40.4 per cent is divided as follows: — 

Due to planning Minutes Per Cent 

F Asking for next job .^ 9 . 82 

G Waiting for job ticket ? 12.52 

22.34 41 

Due to conditions 

E Changing trucks. 2.44 

J Getting chalk 3.68 

A & C Getting and taking work away 3.31 

B Replacing spoilage 9.80 

19.23 35 

Due to man 

D Looking over next load 3.12 

H Interrupted by rail sticker man 1 . 08 

I Getting drink 84 

K Taking sliver from hand -98 

6.02 11 



98 INTRODUCING EFFICIENCY PRINCIPLES 

Due to management Minutes Per Cent 

L Talking with Superintendent 6.91 13 

Analysis of Necessary Operations 

Minutes Per Cent 

Running time 33.03 41 

Changing time 

Head 33.72 

Length 5.90 

Thickness 1.98 

Speed. 1.30 42.90 53 

Other operations 

Oihng 1 . 08 

Measuring rail 2 . 23 

Marking 1.26 4.57 6 

Total 80.50 100 

Comments by Person Making Study 

Delays F & G under planning can be avoided by not only scheduling a "Next 
Job" but having material ready at machine. 

Under conditions: delay H could be avoided by arranging so that machines will 
be properly supplied with trucks. Chalk properly sharpened should be supplied men. 
Material supervisor should also arrange to get work to machine and from machines 
when finished. Workmen should not have to replace spoilage. This should be done 
under direction of planning department and material supervisor. 

As to the workman : a study of the delays will show that he should not be allowed 
for the delays listed. 

P. L. Jones, 

Time Study No. 5 — Woodworking Operations — Boring 

Minutes 

X Running 59 . 12 

X Changing for style 15 . 13 

X Changing for length 4 . 44 

A Getting work 10. 19 

B Taking work away 3.67 

C Consulting about time study 2 . 89 

D Scraping away sawdust 21 . 88 

E Consulting about shortage . 4 . 19 

F Getting shortage 16.39 

G Recording production 2 . 09 

X Getting rod 2.79 

H Drink 2.31 

I Stile stuck in machine (too long) , 2. 14 

J Interrupted for layout .69 



« 



THE TIME STUDY; 99 

Brought forward (minutes) 147 92 

X Testing point of bit 62 

X Taking off 4 bits 2.68 

X Putting in 4 bits ,^ 2.26 

K Waiting for clerk 1.11 

X Consulting about layout 1.61 

L Waiting for layout of stiles 13 . 51 

M Looking for truck 9 . 02 

X Comparing stile with rod .52 

Total time I79 . 25 

Production, 305 pieces. 

Total of necessary operations (marked X) 89.17 minutes. Efficiency is 

89.17 

= 49.7 per cent. 

179.25 

Analysis of Necessary Operations 

Minutes Per Cent 

Running '. 59 12 66.3 

Changing 

Style 15 . 13 

Length 4 . 44 

Bits , 4.94 24.51 27.3 

Other operations 

Getting rod 2.79 

Testing point of bits 62 

Comparing stile and rod 52 

Consulting about layout 1 . 61 5 . 54 6.4 

Total 89.17 100.0 

The waste or inefficiency of 90.08 minutes or 50.3 per cent is: 

Due to planning 

G Recording product 2 . 09 

K Waiting for clerk 1.11 

3.20 3.5 

Due to conditions 

A&B Getting work and taking away 13 . 86 

D Scraping away sawdust 21 . 88 

E&F Consulting about and getting shortage 20 . 58 

I Stile stuck in machine 2.14 

J Interrupted 69 

L Waiting for layout 13 . 51 

M Looking for truck 9.02 

81.68 90.7 

Due to man 

C Consulting about time study 2 . 89 

H Getting drink ^^ 

Total 5 . 20 5.8 



100 



INTRODUCING EFFICIENCY PRINCIPLES 



Comments by Person Making Study 

Under planning: man should not have to record production, and the planning 
should be so arranged that a man should not wait for a clerk. 

Under conditions: material supervisor, in conjunction with dispatcher, should 
arrange for supplying work scheduled and taking same away. The necessity for scrap- 
ing away sawdust should be eliminated by bettering the suction apparatus. Man 
should not have to replace spoiled work. This should be done under the direction 
of the dispatcher and material supervisor. Steps should be taken to see why pieces 
are too long so that material won't stick in machines. Properly arranging for laying 
out work in advance would do away with delays like J & L. Trucks should be pro- 
vided so men won't have to look for them. 

Man should not be allowed for delays C & H. P. L. Jones. 

Riveting; 5^-Inch, Countersunk by Hand (See Page 103) 





Riveting 


Reaming 


Time 


Number 


Time 


Number Time 


0-7.0 


5 


7.0 




19 


10 


12.0 




21 








27 


10 


6.0 




31 


5 


4.0 




34.5 


5 


3.5 




36.9 








39.9 






5 3.0 


50.9 


10 


11.0 




57.9 


10 


7.0 




60.4 






3 2.5 


67.6 


10 


7.2 




71.1 


5 


3.5 




73.3 








81.3 


10 


8.0 




87.8 


10 


6.5 




95.2 








101.9 


10 


6.7 




109.0 


10 


7.1 




1.12.5 






5 3.5 


116.5 


5 


4.0 




122.6 


10 


6.1 




126.1 






6 3.5 


132.8 


10 


6.7 




Total... 


135 


106.3 


19 12.5 


Reaming. . . . 


. 


12.5 




Delays 


. 


14.0 




Total time. . 


, 


132.8 




A 


B 


C 


D E 



Delays 



Time 



Reason 



2.0 Rivet not hot enough 



2.4 Waiting for rivet 



2.2 Rivet not hot enough 



7 . 4 Waiting for rivets to heat 



14.0 



F 



G 

10/26/13 

P. L. Jones. 



THE TIME STUDY 



101 



Name of Part 


Symbol Group Mafl 


Operation 










No. ot Tools in use 


Type of Machine No. Pes. Machined 


Machine No Gang No Dept. 


Belt Motor Kind of Steel Tools 


NO. 


OPERATIONS 


SPEED 


FEED 


CDT 


MEN 


Minutes 


UiDutes 
AUowod 




































■ 
































































































































































' 
































































) 
















































- 






























































TOTAL TIME IN MINUTES 






TOTAL GANG HOURS MEN [ 




Remarks 




















NAME OP OPERATOR OR LEADER RATE EFFY 


Time Study No. Made by Date 


Approved by Schedule No. Date 

The Engineering Magazine 





Fig. Q. Form for Recording a Time Study 

In listing the information when the study is made, the best plan is 
to use plain quadrille ruled paper in a loose-leaf binder, making the 
entries in pencil. The study should then be written up in ink or by a 
typewriter on some standard form designed for the particular work. 
Fig. 9 will illustrate the method to follow in the machine shop. To 
show clearly how to make the study previous to transcribing, we can 
use the riveting study, shown in the lower half of the opposite page, as 
an illustration. 

The entries in columns C, E and F would be made in the office upon 



102 



INTRODUCING EFFICIENCY PRINCIPLES 



completion of the study. The cumulative time at A along with the 
number of rivets driven and holes reamed, as shown by B and D and 
the reasons as given at G, would be entered when making the study. 
From the information as shown Study No. 3 is written up in per- 
manent shape. 

The following assembly study will outline the method of making 
such studies prior to transcribing and putting data in permanent 
shape : 



Btm 


Top 


Btm 


Top 


Panel 


Take 


Delays 


Production 


Delays 


Stile 


Stile 


Rail 


Rail 




Away 


Time 


Key 


V = 1 door 




.18 


.25 


.05 


.13 


.05 


.13 


.41 


D 


V vv 


A Waiting for 




18 


.24 


.05 


.16 


.06 


.13 


.95 


E 


V vv 


work 




20 


.23 


.05 


.13 


.07 


.12 


.61 


B 


V vv 






18 


.27 


.07 


.17 


.06 


.12 


.62 


B 


V V V 


B Waiting for 




19 


.31 


.07 


.13 


.06 


.13 


.43 


B 


V V V 


press 




21 


.29 


.08 


.14 


.08 


.12 


1.50 


B 


V V V 






22 


.23 


.08 


.11 


.07 


.13 


2.31 


C 


vvv 


C Taking doors 




21 


.28 


.09 


.17 


.06 


.11 


.51 


B 


vv V. 


apart 




22 


.30 


.06 


.13 


.08 


.13 


1.05 


B 


vvv 






20 


.31 


.07 


.12 


.06 


.14 


.61 


B 


V V 






22 


.30 


.06 


.12 


.07 


.13 


1.31 


A 


V V 


D Piling mate- 




24 


.28 


.08 


.12 


.09 


.14 


5.12 


C 


V V 


rial 




23 


.30 


.08 


.15 


.07 


.13 


.89 


A 


V V 






23 


.31 


.08 


.15 


.07 


.12 


1.41 


C 


V V 






23 


.30 


.08 


.12 


.08 


.14 


.45 


B 


V V 






.22 


.28 


.09 


.17 


.08 


.13 


.42 


A 


V V 


E Changing 


1. 


.21 


.28 


.07 


.14 


.08 


.13 


1.22 


A 


V V 




2. 


.18 


.23 


.06 


.11 


.05 


.11 


.55 


A 


V V 


Gluing machine 














.58 


B 










, 








.62 


B 


















.17 


B 


















.80 


B 


















11.80 


A 


49 






1 Average time 






.51 


B 








2 Best time 








.31 


B 


















.11 


B 


















.08 


B 


















' .50 


B 


















.10 


B 


















.28 


B 




• 
















.38 


B 







36.61 



10/21/13 

P. L. Jones. 



THE TIME STUDY 103 

In putting this information into permanent shape the facts would 
be copied as in studies 1 to 5 in addition to which there would be the 
following data to make the study complete: 

TOTAL OF NECESSARY OPERATIONS 

(.21 + .28 + .07 + .14 + .08 + .13) ^ 49 doors = 44.6 minutes average time 

Necessary operations 44 . 6 minutes 

Delays 36.6 

Total. 81.2 " 

Efficiency therefore is 44 . 6 -^ 81 . 2 = 54 . 9 per cent 
The waste or inefficiency of 36.6 minutes or 45.1 per cent is divided as follows — 
Due to planning 

Waiting for material 16.19 16.19 44 . 2 per cent 

Due to conditions 

Waiting for clamp 10 . 22 

Taking doors apart 8 . 84 

Piling material 41 

Changing machine 95 20 . 42 55 . 8 per cent 

Comments by Person Making Study. — Sufficient Material should be furnished 
in advance so men will not have to wait for it. A helper should be placed with 
clamp man to eliminate waiting for clamp. Faulty panels should not be used. This 
would do away with taking doors apart. Material should be properly piled for 
assemblers by men taking the material to benches. P. L. Jones. 



The following study will show the method of noting when the 
times are large enough to enable the operator to record the time for 
all factors. In the door study the times were so small that the study 
man could not get readings on each of the operations for all doors. 
This also illustrates the method of making assembly studies. 

Assembling x\ & C Frames X 220 

Operation CNCNCNCNCNAvg Best 

Placing Shaft on 

Skids 0.7 

Attaching L. H. 

Collar 2.1 

Attaching R. H. 

Collar 3.6 

Fastening bolts . 5.1 
Putting on clutch 8.5 
Attaching Springll . 3 
Bolting on lever .13.3 

Removing 14.3 

Total 

C Cumulative Time. N Net Working Time. 



0.7 15.3 


1.0 


31.2 


0.6 


49.2 


0.8 


75.5 


0.7 


0.76 


0.6 


1.4 17.3 


2.0 


32.4 


1.2 


51.0 


1.8 


77.1 


1.6 


1.60 


1.2 


1.5 18.6 


1.3 


34.5 


2.1 


54.0 


3.0 


79.1 


2.0 


1.98 


1.3 


1.5 20.3 


1.7 


35.7 


1.2 


55.8 


1.8 


81.2 


2.1 


1.66 


1.2 


3.4 24.5 


4.2 


38.5 


2.8 


60.9 


5.1 


84.9 


3.7 


3.84 


2.8 


2.8 27.6 


3.1 


43.9 


5.4 


68.5 


7.6 


89.4 


4.5 


4.68 


2.8 


2.0 29.4 


1.8 


46.3 


2.4 


73.0 


4.5 


93.6 


4.2 


2.98 


1.8 


1.0 30.6 


1.2 


48.4 


2.1 


74.8 


1.8 


95.5 


1.9 


1.60 


1.0 


4.3 


16.3 




17.8 




26.4 




20.7 


19.1 


12.7 



104 



INTRODUCING EFFICIENCY PRINCIPLES 



To illustrate further the method of making studies when times 
are so small as to render it next to impossible to take consecutive 
readings, the following turret-lathe study is offered. This would be 
written up in permanent form exactly as taken, plus such comments 
as the time-study man would be able to make. 

Putting 1st Roughing Changing 2d Roughing Changing Square Removing 



Piece in 


Cut 


.20 


.35 


.18 


.37 


.14 


.33 


.13 


.29 


.15 


.34 


.16 


.30 


.14 


.33 


.13 


.28 


.18 


.31 


.13 


.29 


.15 


.30 


.14 


.30 


.15 


.32 




.32 




.34 


Avg. .152 


.318 


Best .130 


.280 



Tool 

.06 

.07 

.05 

.04 

.07 

.06 

.05 

.05 

.06 

.05 

.07 

.04 

.04 



054 
040 



Cut 

.18 

.21 

.19 

.19 

.19 

.19 

.16 

.20 

.19 

.18 

.22 

.21 

.23 

.22 

.21 

.198 
.160 



Tool 



End 



Piece 



.06 


.26 


.14 


.04 


.23 


.13 


.07 


.23 


.14 


.06 


.25 


.12 


.05 


.22 


.11 


.05 


.25 


.12 


.04 


.26 


11 


.07 


.24 


.12 


.06 


.25 


.12 


.06 


.19 


.09 


.04 


.23 


.16 


.05 


.27 


.14 




.32 


.14 




.29 


.12 




.26 




.054 


.25 


.125 


.040 


.19 


.090 



The chart reproduced in Fig. 10 will show the possibilities in pre- 
senting time-study data in graphical form. It will further illustrate 
the making of two studies at the same time by two different men. 
Being a rolling operation, one man covered the production of the 
roughing rolls while the other covered the delays of the finishing rolls. 

Third Class, or Detailed Studies 
Some time ago I studied the making of candy. In watching the 
girls hand-dipping the centers I was surprised at the rapidity and 
co-ordinations of the motions, which were made with such swiftness 
and dexterity that the eye could scarcely follow them, and I thought 
it was going to be by far the most* difficult task of time-study work 
I had encountered. 

Close study soon revealed the fact that the motions were divisible 
into certain classes, each class having its own peculiarities. By start- 
ing the watch when the girl began the motion and stopping it by using 
the accumulating stem when she finished the motion, then waiting 



THE TIME STUDY 



lOo 







Index of Delays 


Mas. Diam. of Roll 


9.4375 


A. = Wait on Piece 


Min. • 


aoOOO 


B = False Pass 


ilean •• •• •• 


a9687 


C = Waiting CUuknown 


Act. 


&90625 


D = Slow 


Speed of Roll 


353 R.P.M. 


E = Adjust Rolls 


Max. Peripheral Speed 873 Ft. Per Xlin. 


F = Mill Down 


Min. •• •' 


785 ' 




Mean " " 


828 ' 




Act, •• " 


822 




n 




Causes of Delay --I'll 



G = Working other Pass 
H = Wait on Finish 
I = Cobble in Rolls 
J = Mess on Floor 
K = Adjust Rolls 
Ij = Change Spell 



10 1.00 



8 £0 



§6 



o 5 




2 .20 



1 .10 







10 



20 



30 40 50 GO 
Elapsed Time (.Minutes) 



70 SO yo 

The Engineering ilaitiizine 



Fig. 10. Chart of Dual Time Study of a Rolling Operation 



A = Pieces per minute passing through the rolls. 
B =Lost time per minute on the rolls. 



Ai = Accumulative average pieces per minute. 
Bi = Accumulative average lost time per minute. 



106 



INTRODUCING EFFICIENCY PRINCIPLES 



until she started the same motion again, then starting the watch, I was 
able to get some valuable information. I saw, too, that there was a 
definite relation between one motion and another, and by studying 
the performance of a number of girls separately, to determine the 
peculiar motions followed by each, it became possible to reach some 
important conclusions. Some girls made ten motions per piece, others 
5. The average was 8.8 motions. Standardizing showed that 7 mo- 
tions were sufficient, and that through proper directions and training 
6 motions would do the work as efficiently as 8.8 motions. When 
it is considered that the girls averaged 83,000 motions per day of 9 
hours, it can be seen how impossible it would have been to study the 
work in any other way. 

To explain the method of following this class of studies let us 
assume the motions and times for six operators as shown in the table 
following : 

B. 



A. 



C. 



Motions 


Time 


Motions 


Time 


Motions 


Time 


1 


2.0 


M 1 


2.2 ' 


M 1 


2.4 


M 2 


2.1 


N 2 


2.2 


. N 2 


3.1 


3 


3.0 


3 


1.9 


3 


1.6 


N 4 


1.5 


P 4 


2.1 


4 


2.1 


5 


3.4 


Q 5 


1.6 


P 5 


3.4 


6 


1.2 






Q 6 


1.6 


P 7 


2.4 










Q 8 


1.3 
16.9 


• 


10.0 








14.2 


D. 




E. 




F. 


Motions 


Time 


Motions 


Time 


Motions 


Time 


1 


2.4 


1 


2.6 


M 1 


1.8 


M 2 


1.6 


M 2 


1.4 


2 


2.4 


3 


2.1 


N 3 


1.6 


N 3 


1.2 


N 4 


1.9 


4 


2.1 


4 


3.0 


5 


3.4 


5 


1.4 


5 


2.0 


6 


2.0 


P 6 


2.2 


P 6 


1.6 


7 


1.3 


Q 7 


1.6 


Q 7 


1.8 


P 8 


1.5 










Q 9 


3.0 










10 


2.0 











21.2 



12.9 



13.8 



Operator B had the fewest motions, 5 in number, designated by 
letters M, N, O, P, and Q. The motions of the other operators corre- 
sponding to these 5 motions have been marked with these letters, 
which means that those not marked are the unnecessary ones, capable 



THE TIME STUDY 107 

of elimination through training and study. The average number of 
motions is 7.16, the lowest number is 5. Consequently efficiency as 
to motion is 

5 

•-— — = 69.83 per cent 
7.16 

Let us now analyze the times, covering the same motion, as follows: 

M N O P Q Total 

A 2.1 1.5 3.4 2.4 1.3 M 1.91 

B 2.2 2.2 1.9 2.1 1.6 N 1.91 

C 2.4 3.1 2.1 3.4 2.0 O 2.30 

D 1.6 1.9 2.0 1.5 1.6 P 2.20 

E 1.4 1.6 1.4 2.2 1.8 Q 1.65 

F 1.8 1.2 3.0 1.6 



Avg. 1.91 1.91 2.3 2.2 1.65 9.97 

The average time of the motions per operator is as follows: 

A 16.9 
B 10.0 
C 14.2 
D 21.2 
E 12.9 
F 13.8 

Avg. 14.8 

The efficiency as to speed of motions is therefore: 

9.97 

= 67.36 per cent 

14.8 ^ 

The average of the efficiencies 69.83 per cent and 67.36 per cent is 
68.59 per cent. Is this the real efficiency .^^ First consider the following 
ratio : 

Standard 9.97 X 5 motions 



Actual 14.8 X 7.33 motions 



= 47.04 per cent 



The product of the motion and speed efficiencies of 69.83 per cent 
and 67.36 per cent is 47.037 per cent. Consequently this is the real 
efficiency due to the law of dependent sequence. 

Law of Dependent Sequence 
In order to understand this law of dependent sequence more clearly, 
and it is a most important factor, let us show an actual performance 
against a standardized multiple radial-drill operation. 



108 INTRODUCING EFFICIENCY PRINCIPLES 



Item 


Standard 


Actual 


Efficiencj 
per cent 


A Speed 


325 


210 


64.61 


B Feed 


.012 


.006 


50.00 


C Number of drills 


4 


2 


50.00 


D Drilling Time 


2 minutes 


12.4 


16.15 


E Handling Time 


6 '' 


20.7 


28.98 


F Production 


75 


18 


24.00 



It will be observed that in the efficiency column there are five ratios. 
What is the real efficiency and why? Let us try a few calculations. 

per cent 

The average of A B C D and E = 41 . 94 

" ABC and E = 48.39 

" product " A B C D and E = .75 

" ABC and E = 4.68 

The discrepancies are such as to show that final efficiency is neither 
the average nor the "product of the elements. 

Considering the machine, and there are three factors — speed, feed 

and number of drills. The drilling time is 12.4 minutes. From the 

rule "Actual time X Efficiency = Standard" we find the following: 

12.4 min. X 64.61 per cent speed efficiency = 8 min, 
8 " X 50 " feed " = 4 " 

4 " X 50 " drill " = 2 " 

Now from the rule "Standard Time 4- Actual Time = Efficiency'' 
we have: 

Standard time 2 min. . 

\ :— = 16.15 per cent emciency 

Actual time 12.4 min. 

The product of the three factors A, B, and C (64.61 X 50 X 50) 
yields 16.15 per cent efficiency. 

Considering man and machine together, we have: 





Standard 


Actual 


Efficiency 
per cent 


Drilling time 


. . 2 minutes 


12.4 


16.15 


Handling time. . 


..6 " 


20.7 


28.98 


Total 


..8 " 


33.1 


24.0 



Applying the efficiency rule to production, the result is: 

18 pieces actual . 

; — = 24 per cent efficiency 

75 pieces standard 

These calculations show that the law of dependent sequence applies 
to the product of A, B, and C, and that the law of average applies to 
the product of A, B, C, and the element E. 



i i 



THE TIME STUDY 



109 



Many wonder how long a study should take. This is a diiSicult 
question to answer. When starting a study it is next to impossible to 
determine just what will be unearthed in the way of data and facts. A 
study may take an hour or it may take a week. It all depends'upon the 
work studied, the degree of complication and where the strings lead 
to. A safe rule to follow is — " Take as much time as will result in suffi- 
cient facts on which to base conclusions which will withstand any attacks. ''^ 

Rest and Fatigue 

No standard should be determined from a time study without 
considering the fatigue of the worker and the amount of rest required. 
If an ultimate attainment is 10 units in a day, it requires greater exer- 
tion per unit to go from 9 to 10 units than from 7 to 8 units. Counting 
normal effort 1, exertion for greater accomplishment is not 1, 2, 3, 4, 5, 
but rather 1, 2, 4, 8, 16; Yet men are often criticized for not attaining 
the 20 per cent from 80 to 100 per cent efficiency as readily as the 
20 per cent from 60 to 80 per cent efficiency. The rule to follow is: 

"Any standard determined should be one that a man can attain 
day in and day out without injury to his health of body and mind." 

To give a practical example: An operation was recently scheduled 
at 23 pieces per hour, and the workman over a reasonable period was 
unable to attain the standard. It was decided to make a careful 
analysis to ascertain why he was unable to do so. The man, working 
as he usually did, produced 15.8 pieces per hour during the morning 
of the day he was turned over to the writer. The following time 
study will show how rest was considered, and the influence it exerted. 

Hour 



1st. 



2d. 



3d. 



4th. 



Rest 


Work 


Pieces 


Total 


linutes 


Minutes 


Produced 


Pieces 


f noon 


25 


9I 


18 


I5 


25 


9| 


|5 


27 


I0I 


20 


I3 


27 


io| 


[3 


17 


7 






^3 


17 


7 


. 


22 


3 


17 


8 

< 

5 






3 


10 






2 


10 


4 






1^ 


10 


5 


>• 


23 


2 


10 


4 






2 


10 


5, 







Highest time recorded per piece — 3.0 minutes. Lowest time recorded per piece 
— 1.55 minutes. Best time for short run — 5 pieces in 10 minutes. 



110 INTRODUCING EFFICIENCY PRINCIPLES 

The operation was intensely fatiguing, yet you will notice that in 
the fourth hour after -starting the study, or the ninth from starting time 
in the morning, the worker did his best work. The average pieces per 
hour for ?he four hours run was 20.7 as against 15.8 in the morning — 
an increase of 32.6 per cent. It may be well to say in connection that 
the man subsequently attained an efficiency between 95 per cent and 
100 per cent on this work. 

To illustrate more clearly how the stop watch can be used to ad- 
vantage in determining the part fatigue plays in work, the following 
figures will be found interesting to the student of the human. A man 
grinding castings on a 6-foot grindstone was studied for 1.8 hours. 
At the beginning of the work 21 pieces were studied, showing an 
average time of .739 minutes per piece. When about one-half of the 
work had been completed,^ 16 pieces were carefully timed, which 
showed an average time of .907 minutes per piece. As the man was 
about to finish, 8 pieces were studied with an average time of 1.07 
minutes per piece. The showing is as follows: 

At beginning 21 pieces . 739 minutes Base 

One-half way 16 " .907 *' 22.7 per cent above base 

At finish 8 " 1.070 " 44.8 " " 

The chart (Fig. 11) shows the effect of fatigue on this operator. 

The man worked consistently and there was no sign or evidence 
of loafing. During the first part of the work, he turned out several 
pieces in times ranging from .59 to .75 minutes each. The work to 
be done was fairly constant, and consisted of grinding the same sur- 
face each time, instead of removing fins, so that the variations due 
to the material and kind of work played a small part. It was simply 
a case of the man going at it too hard at first and becoming exhausted 
before finishing. This can better be appreciated by explaining that, 
in working, the man did not work by standing over the wheel and 
bearing down with his entire weight, nor was he standing in front of 
it bearing against the wheel with all his power. He was in front and 
a little above the center so that he had to bear down at an angle of 
about 35 degrees. Further, in picking up the pieces, at the beginning 
he took an average of .025 minutes per piece, while at the finish he 
was taking .052 minutes "per piece, an increase of 108 per cent. 

Speeding the Workers 
I am sometimes asked if the stop-watch time study is aimed to 
speed up and drive the men. If I felt for a moment that this was 



1.40 



1.20 



1.00 



THE TIME STUDY 

10 15 20^^^^^S25 30 35 



111 



.80 



.60 



.40 



w 



.20 



40 



45 





































































1\ 




































\ 




1 




























r 


\ J 


\ 


j\ 


J 






A 
















-A — 


A 




1 


V 






\J 




t. 


/V 


rJ 


\ 


A 








1 


/V 


a 


'\ 






\ r- 










/\ 


/ ^ 




\, 


A 








/ 




V 


\ 














\ 


/ ^ 






U^ 


\ 


^\ 






/ 


V 












' \ 


[^ 


y 






























































9i 


iPcs 


Wor 


ked ' 


)n in 


all 


































































































- 



































































The Englncerbuj Magazin* 



Fig. II. Chart Showing Influence of Fatigue on a Grindstone Operator 

so I would in the future refuse to use one or have one used for me. In 
the hands of men with their hearts in the right place the time study is one 
of the most powerful agencies there is in bringing about greater efficiency. 
There are three ways to make a time study: 

1. Keeping the watch in the pocket so as to fool (.^) the workman. 

2. Going up to a man and, without saying a word, flashing a watch 
and beginning to make notes. 

3. Explaining to the men the purpose of the study; why the 
watch is necessary; what it all means; winning their consent and 
even their interest and approval, and then making the study. 

The first plan is the rankest kind of deceit, and the man who uses 
this method should not be surprised if the men in turn try to "go him 
one better." He deserves it. 

The second plan is disconcerting to the men; it arouses their an- 
tagonism and makes them feel that they are mere puppets — to be ob- 
served without any right to protest or to ascertain the purpose of the 
study. Only a man lacking tact and with no knowledge of human 
nature would attempt this sort of a study. 



112 INTRODUCING EFFICIENCY PRINCIPLES 

With the stop watch I have studied coal miners, moulders, smiths, 
laborers, machinists, structural workers, and men and girls in other 
lines. I have yet to have my first difficulty because my plan has been: 

1. Getting acquainted with the men. 

2. Explaining the use of the time study and the stop watch. 

3. Securing the confidence of the worker. 

4. Explaining and discussing with the men the details of the work 
as the study progressed. 

Starting the Time-Study Campaign 

In order to begin the work of time and motion study, the first con- 
sideration is the selection of men possessing the following qualifica- 
tions : 

Tact 

Patience 

Accuracy 

An analytical mind 

A good imagination 

Constructive reasoning ability 

Experience in the line of work being studied. 

In case you cannot find such men (and they are scarce indeed), 
the men to make the studies should possess the first five. Their studies 
should then be turned over to men possessing the last two. Chemists 
make first-class time-study men because of their thorough training 
along lines of analysis and precision. 

After the men have been found, they must learn how to use the 
stop watch and make the studies. Having them read all about it, 
telling them what to do, and even elaborate instructions, will accom- 
plish less than their actual contact with the work. The best advice 
is therefore to turn the men loose, after the way has first been properly 
paved, and have them start in, no matter how crude their findings 
may be at first. They will learn more about how to make studies 
in their efforts actually to make them, than in any other way. Their 
reports should be taken and carefully reviewed by the person in charge 
of the work, and advice should be given upon the points they fail to 
grasp. Send them back and repeat the process and they will in a 
short time have a thorough conception of the work, in addition to 
considerable experience of a decidedly practical value. 

As soon as they can be trusted to make the studies and record 
their data properly, have them start the work of commenting so as 



THE TIME STUDY 113 

to test for imagination and constructive ability. If their comments 
are good and they show promise of constructive abihty, they can 
then be trained along lines of outlining betterments. Otherwise this 
part of the work should be turned over to a second set of men who 
should be trained to take time-study data, briefly study the work 
studied so as to be familiar with the details in a general way, and 
standardize the findings as to conditions, operations, and planning. 



Chapter XII 

THE PLANNING DEPARTMENT— ANALYSIS AND MATE- 
RIAL CONTROL 

• 

MANUFACTURING should be regarded as an attempt to realize 
an ideal, concretely expressed in business as the production of 
a definite number of units of design, in a definite time, within 
a definite cost limit. Success in realization depends upon: 

1. The ideal itself — whether high or low; whether clearly defined 
or imperfectly stated or understood; whether effectively kept before 
the organization by constant measurement of performance, or lost 
to sight by neglect to compare performance constantly with standards. 

2. The means provided the organization for working out the 
ideals. 

3. The use of the means provided. 

With this as a basis, how are we to proceed to the development 
of the machinery which will create the ideals, provide the means, 
and arrange for their proper use.^^ The basic thought can be expressed 
in the form of a theorem: 

Given a plant and equipment with an organization to handle the work, the manu- 
facture of all that is designed by the engineering department and sold by the sales 
department can be handled to best advantage only when the details, instead of 
being considered independently by each department, are controlled by one function 
which can consider each detail in connection with all the others and act as a ''clearing 
house" for all information in any way affecting the manufacturing. 

It is obvious that no man should do any work that can be per- 
formed as well by another with Jess skill and at less expense, nor should 
work be assigned to men because they have nothing else to do, instead 
of to those best fitted to do it. Further, efficient manufacturing re- 
quires the assignment of sufficient work in advance and properly co- 
ordinated to keep the men fully employed during the day. It is also 
conceded that the relative importance and availability of all work 
should be known and considered — that lost motion and waste time 

114 



THE PLANNING DEPARTMENT 115 

should be eliminated, and that changes and rush orders should be 
reduced to a minimum. 

This can all be done in the most efficient manner from one place 
instead of many. Our theorem is therefore true, and means planning — 
the purpose of which is to provide a means whereby all details in con- 
nection with production can be intelligently planned in advance and 
efficiently dispatched — each machine or gang enabled to work with 
reference to all other machines and gangs — the shop management 
enabled through advance knowledge to provide the necessary elements 
— materials, machines, tools, drawings, etc. 

The fundamental considerations in any scheme of efficient planning 
must be known and built into the planning structure. They are: 

1 . A knoYvdedge of what to make, the quantities, and the time in which to make them. 

2. Complete up-to-the-minute knowledge of stock receipts and disbursements. 

3. Prompt checking of requirements against stock records. 

4. Maintenance of stock margins that will insure material being on hand when 
wanted. 

5. Analysis of the parts entering into the manufacture of the product, their 
operations and the estimated time per operation. 

6. Routing of orders analyzed to machines and gangs. 

7. Study of planning to avoid congestion. 

8. Rearrangement of schedule to meet unforeseen contingencies. 

9. Replacing spoiled or defective material. 

10. Charting progress of orders. 

11. Study of conditions interfering with prompt execution of plans. 

12. Delivery of material to machine and gangs. 

With these agreed to, it is necessary to consider a few rules so im- 
portant that the success or failure of the "planning is entirely dependent 
upon their observance. These are: 

1. No work should be undertaken in any department of the plant without an 
order in writing. 

2. No orders are to be started until they have first passed through the planning 
department for attention and scheduling. 

3. No job will be considered available until everything is or will he ready for 
the work. 

4. No job is to be changed after starting until the planning department has 
been notified and arranged for the changes. 

5. No part of an operation is to be started by a succeeding operation until the 
planning department has arranged for it. 

6. Sufficient work must at all times be scheduled ahead so that there will be no 
likelihood of a machine or gang running out of work. Better to schedule too much 
work than not enough. 

7. No material is to be moved to a starting operation without the knowledge 
of the planning department. 



116 INTRODUCING EFFICIENCY PRINCIPLES 

8. There must be a "next job" for every machine and gang with everything in 
readiness for the work. 

The engineer should first of all arrange for the immediate selection 
and training of the staff that will look after the work of planning. 
This staff should consist of the following: 

A "planning supervisor, who is to have charge of the work of plan- 
ning and dispatching under the direction of the engineer. Under the 
planning supervisor are to be: 

A. A chief dispatcher, who is to have charge of the details in con- 
nection with scheduling the w^ork. 

B. A material supervisor, who is to have control of all details in 
connection with the movement, handling, and recording of all material. 

Under the chief dispatcher are to be: 

a. Department dispatchers. 

b. Schedule clerk. 

c. Record clerk. 

d. Messengers. 

Under the material supervisor: 

a. Stock keeper. 

b. Receiving clerk. 

c. Material clerk. 

d. Men in charge of moving material. 

Now what.^ It is obvious that no planning of any kind can be done 
until it is known what is going to be made. Further, no work can be 
undertaken until it is known what is in stock, what must be made, 
and what must be purchased. It is also necessary to know what is 
done and when it is done in order to keep track of progress. This 
therefore means: 

Analysis of work to be done 

Material control 

Time keeping 
and the engineer can do no real work towards the realization of his 
ideals as to planning until he has provided for these essentials. 

Analysis of Work 
This matter of analysis is important, so much so as to form the 
real basis of the work whether the thing to be made is an engine, a 
stand pipe, a door, or a lot of castings. There must be a compre- 
hensive knowledge regarding what is to be done. 



•I 



THE PLANNING DEPARTMENT 



117 



ANALYSIS OF PART No. 


TYPE GROUP PART 


NO. 


NAME OF OPERATION 


AiSIGNMENT 






% 


TOOLS-JIGS 


PRICE 
PFR 


aCHEDULE 
NO. 


TIME 


STD 


CHANGE 


































































































































































































































































































. 














































































■ 



















































The Engineering Magazine 



Fig. 12. Form for Recording Time Analysis of a Part 

The starting point is therefore some kind of a bill of material 
covering machine-shop, structural-shop, or other departmental work, 
on which are to be listed the parts that enter into the manufacture 
of the particular design met with. This can be in the form of a stock 
list for standard units or a special write-up each time, for irregular work. 

It must further be known what work is to be performed on each 
part and how the various parts are to be assembled. Then comes the 
task of assigning the work to be done to the machines and gangs best 
equipped or qualified to do it. It is also necessary to know the time 
the various operations should take. This answers 

What is to be made.^ 

How it is to be made.^ 

Where it is to be made.^^ 

How long the work takes .^^ 

The analysis which is to consider these questions must be made 
from the standpoint of the importance of the work to the shop or depart- 
ment. 

For part analysis the form given in Fig. 12 can be used. On this 
are to be entered the operations in the order in which they are to be 
performed. The machine or gang that should do the work is also to be 



118 INTRODUCING EFFICIENCY PRINCIPLES 

entered, as well as the speed, feed, and cut to be used. The jigs and 
tool used should be listed, also the piece-work price, the schedule 
number, and the standard time allowed. This information is to be 
worked up from actual studies, from analysis of drawings, or from 
estimates and outlines prepared by the foremen. 

In order to secure estimates systematically, Fig. 13 can be used 
to advantage. 









ESTIMATE 


CARD 




TO 








_DEP'T 
ESTIMATE 

_ QUANTIT 


DATE 


K4NDL 

UNIT 
TIME 

NO. IV 
ESTII\ 


.Y FURNISH US AT 

ORDER NO. 
FOR 


ONCE WITH TIME 


ON- 
Y 




OPERATION 


















OF WORK 




TOTAL UNITS 






PER UNIT 




_TOTAL TIME IN GANG HRS 

GANG 
MACi^lNE 




lEN IN GANG _ 
/lATE WANTED 


BY . 


i CONSIDERED 





The Engineering Magazine 

Fig. 13. Estimate Card 

So much for the detailed operation of parts. We must now consider 
their tie-up into groups, assemblies, and erection. How can this be 
shown? Let us take up the order of importance first. If the assembly 
and erection floors could have their own way, study and experience 
would conclusively show that groups and parts are wanted in a regular 
and logical order. Why not give them their way? 

Assume for instance that it takes 250 hours to erect a certain 
unit; that the erection floor wants parts 1, 2, 3 and 4 to start with; that 
parts 5, 6, 7, 8 and 9 properly assembled are wanted in 25 hours after 
starting erection; that parts 10, 11, 12, 13, 14, 15, 16 are wanted 150 
hours after starting, and parts 17, 18, 19, 20, 21, 22, 23, 24 are wanted 
225 hours from the starting time. This means that certain definite 
requirements can be given the machine shop and sub-assembly floors. 
Graphically we can show the general outline in Fig. 14. 



THE PLANNING DEPARTMENT 



119 



In arranging to get these parts and assemblies to the erecting floor 
exactly as wanted, let us further picture the details showing the part 
and sub-assembly times, so as to make the planning as simple and easy 
as possible. Fig. 15 shows these details. 

As a further and most important aid, each line should show the 
times on the various operations. Fig. 16 is an example. 

This all means that with finishing date known as B, Fig. 15, the 
starting time of the various parts can be definitely determined, and 
that the time of turning over parts to sub-assembly and from sub- 
assembly to erection can also be determined. Further it is known 
what "part should he started first. 



-250 Hours 



-> 



Parts P^rts 



sb 



■ 25 ^ 
Hours 



Parts 
10-16 



150 



Hours 



225 



Parts 
17-24 



Hours 



The Engineering Magazine 



Fig. 14. Graphic Analysis of an Assembling Job 

Reference to Fig. 15 will show that part A, Group XXI, should 
be the first thing started, with parts D, C and B following in order. 
Then comes XX2, part G first, followed by I, E, H and F in order. 
On XX3, part J with 80 hours should be started first, followed by N, 
P, L, M, O and K in order. Following soon after the start of N, 
Group XX3, however, part X, Group XX4, should be started. There 
is only 10 hours difference (see C) between parts N and X. It can 
be seen that if all parts of XX4 were begun after parts on XX3 were 
finished, it would set the work back 36 hours (see Cl) unless night 
or overtime work were resorted to. Part X must therefore be started 
a long time before beginning the other parts of the same group. 

This establishes an important law: 

The selection of a starting operation is governed entirely by the line 
whose starting point is furthest from the finishing line. 

Let us study Fig. 16 for a moment. Assume that the time of 46 
hours covers the machinery of 50 pieces. The first operation takes 6 
hours, the second 10 hours. If in 3 hours the man on operation No: 1 
turns over 25 pieces to operation No. 2, it means that 5 hours work has 



120 



INTRODUCING EFFICIENCY PRINCIPLES 



been released from No. 1 to No. 2. It would therefore be safe to turn 
parts over to No. 2 as fast as they are finished at No. 1. But, if man 
on No. 2 finishes and turns over the 25 pieces taking 5 hours to No. 3, 
which requires 4 hours, it means that only 2 hours work has been re- 
leased. In other words if man on No. 3 takes pieces from No. 2 as fast 
as completed, the man on No. 8 will have to waste 7.2 minutes per piece. 



9 
2 


A 
B 












i50 Hours 
















4_£ 

7 

XX 


C 

D 
I 




T 


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1.5_ 
12 G 


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F 15 
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J 

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The Engineering Magazine 

Fig. 15. Graphic Analysis of Assembly and Operation Details 

for while man on No. 2 is taking 12 minutes per piece, man on No. 3 

requires only J^.S minutes per piece — a difference of 7.2 minutes. 

This establishes the second law of planning, of such far-reaching 

importance as to be almost revolutionary: 

No succeeding operation should he scheduled when its ratio to that of 

the preceding operation is less than one to one. 

In the illustration on Fig. 16 we have: ^ , 

Sale 

Operation Time Ratio Yes No 

1 6 1.66 to 1 V 

2 10 1.66 to 1 V 

3 4 .4 to 1 V 

4 10 2.5 to 1 V 

5 . 4 .4 to 1 V 

6 6 1.5 to 1 V 

7 6 1 to 1 V 



THE PLANNING DEPARTMENT 



121 



We can go a step further, and on Fig. 16 show actual progress of 
work by dotted hues. In the illustration, work on operations 1, 2 
and 3 has been completed and 4 hours on operation 4. Further by 
using the letter "Y" for yes and ''N" for no, the information whether 
or not succeeding operations are safe to start before completion of 
preceding operations, can be entered under line. 

It can thus be seen how valuable this would all be when used in 
connection with Fig. 15. Progress would be shown at all stages of the 
work. If it was necessary to get after an order, the chart would pre- 
sent a clear and comprehensive picture of the exact situation showing 
where to apply pressure, 

A further point of advantage is that in case certain classes of work 
are wanted to keep machines and men busy, these charts can be looked 



1 


2 


3 


4 


5 


6 


7 


6 Hrs. 


10 Hrs. 


4 Hrs. 


10 Hrs. 


4 Hrs. 


C Hrs. 


6 Hrs. 










N 


Y 


Y 


Y " 1 


r. y 1 


r N 1 


^ Y 

16 








Hours 









The Engineering Magazine 



Fig. 1 6. Graphic Record of Operation Times and Progress of Work 

up and studied, by concentrating attention on the full lines covering 
the class of work desired showing no dotted lines under them. 

The method outlined also leads to an important principle which 
all should work to, and which will do much to correct the usual policy 
found in shops. It can be stated as follows: 

The method to follow in getting the work through a shop is not to apply 
pressure at A towards B, but to draw at B from A. 

This means a ''pull" type instead of a "push" type, as one man 
expressed it. 

Assembly and erection foremen have told me time and time again 
that they could not schedule ahead because they did not know what was 
coming to them from the machines. Subsequent investigations have 
always borne out these statements. How could they be expected to 
do so w^hen in a guess-it-will-get-there-all-right manner, an attemjit 
is made to start work in and through without definite reference to 
where it will be from time to time and where it will end up.^ Further, 
I have often seen plenty of work at machines with men working at a 
very fair rate of efficiency, while the assembly and erection men were 



122 



INTRODUCING EFFICIENCY PRINCIPLES 



either hungry for parts or working on whatever they could get so as to 
keep busy. Instead of planning to keep the machines busy with 
only a general idea as regards the erection, the task should he to keep the 
assemblers and erection men busy on what they should have, and then 
to fit the work in and through the machines to suit this line-up. Five 
minutes spent on a study of Fig. 15, tracing from B to Xl, X2, and 
X3, and from XXl, to XX4, through to the end of each line will show 



WANTED 






ANALYSIS SHEET 










UNDER PROGRESS 






ORDER N. CUSTOMER QUANTITY ARTICLE 




LIST WORK AS IT SHOULD BE TAKEN THROUGH SHOP 1 


ITEM 
NO. 


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The Engineering Magazine 



Fig. 17. Analysis Sheet for Structural Shop 



that planning in the manner advocated can easily be done. In ad- 
dition to this, by putting in the finishing time at B and the starting 
time at A, the time to complete becomes the difference between A and B, 

Further, the value of using lines in graphic form is so apparent 
from a study of the facts just outlined that we can consider this a 
basic principle without further argument. 

In this connection let us combat a pernicious theory which pre- 
vails in many plants. It is to the effect that a definite number of 
units are to be built each day or each week. From Fig. 15 it will 
be seen that X2 is 100 hours from B, with 25 hours of sub-assembly 
time and 80 hours as the greatest amount of work on the parts making 



THE PLANNING DEPARTMENT 123 

up the group, or 205 hours in all. This means, if the erection and 
assembly are double-gang operations, that 50 hours and 123^ hours 
and 80 hours, or 1423^2 hours, is the time necessary to get part J, with 
the other parts, to X2 at the right time. If the week consists of 60 
hours, it is obvious that it would be the height of folly to start part J 
at the beginning of the week. If we divide 1423^ by 60 we have 2.37 
weeks as the work factor. In other words, if the start is made in the 
same week the work is wanted, it will mean overtime, night work, 
and perhaps Sunday work. The theory should therefore be: 

Requirements should be expected ''at the rate'' of a certain quantity 
each day or each week, and the planning arranged accordingly. 

The value of the plan outlined is not confined to the machine or 
structural shops alone. The foundry can be scheduled from Fig. 15 
as a basis, and the purchasing department can be notified well in ad- 
vance of the order in which certain material is wanted. It all means 
that the end is at all times plainly in sight, instead of starting some- 
where with the end ''up in the air." 

The form shown in Fig. 12 does not as a rule apply to the structural 
shop owing to the special nature of a large part of the work. Charting 
as outlined in Fig. 15 can be used to advantage, and to cover the 
analysis Fig. 17 is shown. Time-study work rather than planning 
makes foundry analysis necessary, so this feature of analysis will not 
be considered at this time. 

Control of Material 

It stands to reason that even though a job may be analyzed ever 
so carefully, work cannot be scheduled properly until the planning 
department knows the exact situation with reference to material. 
Some will be in stock. Some will have to be made. Some will have 
to be purchased. 

The control of material as to routing, movement, and knowledge 
is to be vested in the planning department. It is to maintain a 
"material record" showing each item carried as stock. Further, no ma- 
terial, whether in warehouse, yards or shops, is to be moved to starting 
operations until authority has first been secured in writing from the 
planning department. 

All requisitions for purchases are to be sent to the planning de- 
partment before being sent to the purchasing department. As material 
is ordered, the purchasing department is to send to the planning de- 
partment requisition showing the fact. The planning department is 



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1 



























































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































The Engineering Magazine 



Fig. 19. Form for Graphic Record of Purchases 



to be furnished with a hst of all the receipts of material from outside 
and from the foundry. Further, all requisitions for material delivered 
to the shops are to be sent to the planning department for entry in 
the stock record. If these rules are lived up to there will be no excuse 
for failure to have at all times a complete and accurate knowledge 
of material due, on hand, and in process. 

Fig. 18 shows a "material record" sheet, which with the entries 
and explanation under each heading will make the record self-ex- 
planatory. 

The planning department must also keep itself fully informed as 
to material purchased. Because it takes nothing for granted, it should 
maintain a careful watch over material ordered so as to know what 
to depend upon. This can be done only by scheduling and tracing 
the purchases. 

A "purchase schedule" is to be maintained, and as requisitions 



L. 



1^6 INTRODUCING EFFICIENCY PRINCIPLES 

are received covering the purchase of material, the planning department 
is to list this information in the record mentioned. As material is 
ordered, the purchasing department is to give the planning department 
a copy of every order for entry. All letters, confirmation of telephone 
conversations, telegrams, etc., between the purchasing department 
and vendors, which give information as to promises of shipment, 
etc., are to be sent to the planning department. Notices of shipment 
are also to be received by the planning department. 

Lines and letters are to be used instead of writing for recording the 
history of a purchase. The rule to follow is: the letter corresponding 
to the condition of the order is to be entered under the proper date. 
If requisition is reached on the 5th, material ordered on the 8th, wanted 
for the 20th, promised for the 26th, and received on the 30th, the 
showing would be as pictured in Fig. 19. If it is necessary to carry 
the record beyond the month in which the entry is made, a cut sheet 
can be inserted. 

When it is desired to trace an order, a formal purchase schedule 
tracer is to be made out in duplicate by the planning department. 
The duplicate is sent to the purchasing department and the original 
placed in file in the planning department. The purchasing department 
is to secure such information as it can, on receipt of which it is to enter 
in a purchase tracer the facts as secured and return the tracer to the 
planning department. 

Each day the planning department is to take the purchase schedule 
and the clerk in charge of the work should observe under the proper 
dates the items that are due as indicated. 

He should also observe what will be due five or six days from the 
date. Tracers are to be made out from this analysis. To keep in 
close touch with overdue items, the line covering such items should be 
entered in red. When new promises are received, the items are to be 
re-scheduled as outlined. 



Chapter XIII 



THE PLANNING 



DEPARTMENT 
MACHINERY 



THE NECESSARY 



«4 VeiMVt7Va9«f 

I I Ml 



m 



NOW that methods have been provided for properly analyzing 
the work to be done, and the material has been brought under 
intelligent control, we can take up the practical steps leading 
to actual scheduling of the various operations. 

The first factor to consider is the matter of time keeping. It is 
most essential to know when a 
man starts work on an operation, 
w^hen he finishes, and what he 
does. Otherwise it would be im- 
possible to schedule the work to 
be done. There are four ways to 
secure this information: 

1. To let the w^orkmen make 
out their own time reports. 

2. To have a clerk make reg- 
ular trips among the men getting 
time and production. 

3. To have the workmen re- 
port to offices w^hen starting and 
finishing work. 

4. To use an annunciator sys- 
tem enabling the workmen to 
notify the planning department 
of changes. (See Fig. 20.) 

The fourth plan is the most 
efficient, and if the plant is not 
too large, it should be adopted. In this the machines and floors have 
push buttons connected to an annunciator board in the planning 
office. A ring brings a clerk to the particular floor or machine. Further, 

m 



i-i-i-t 

V4SV44 ?45 V 

y_ Y y y j 
i"iH"y ! 

n Hi 



Fig. 20. Annunciator Board 



128 



INTRODUCING EFFICIENCY PRINCIPLES 



by using signals the clerk knows what is wanted. The signals used 



are: 



One ring; change in job, taking up next one scheduled. 

Two rings; rejected work. 

Three rings; delays. 

If the plant is large, the cost of installing the annunciator system 
may be prohibitive, in which case the third plan should be followed. 
Sub-stations should be placed in different parts of the shop to which 
the men are to report when starting, finishing or changing work, for 
delays, rejections, etc. A station should be provided for every 100 men. 



Forraa48-5-26-13-2000zN 



MACHINE SHOP SERVICE CARD 



NO. cD2^0 



DWG. NO. 



(aO^ 



JOB NO. 



Vf c^y^ U 



uyui^ 



u2^C<iyfcr>\^ /^l-t>ct.^ 



GROUP NO. 



y-/ 



^ ITEM 2- 



PRODUCTION 



QUANTITY 



finite!) 



w^ 



BALANCE 



PCS. UNITS 



/0-t> 



/o 



9. 



O 



ESTIMATETD 
TIME PER UNIT 



ESTIMATED 

TIME WORK FINISHED 



M 



/O 



UNITS OF 
WORK 



PIECE WK. 



TIME AND COST 



MEN EMPLOYED 



LEADER 



/-^^ 



HELPERS 



THIS OPERATION 



^LcLonj2^ 



MACHINE 



^/:z- 



GANG 



TIME 



STARTED 



ELAPSED 



ALLOW 



ACTUAL 



^ 



^ 



7 



7 



3 



/ 



'X- 



/ 



/ 



RATE 



^. 



> 



NEXT OPERATION 



'**'^^ ^A/JJy 



lACHINE ^ Q ^/, 



GANG 



COST 



/ 



a 



MOVED 



^ 



BY 



/^ 



The Engineering Magazinfi 



Fig. 21. Form for Service Card 



In both plans Fig. 21 known as the ** Service Card" (3 by 5 inches 
in size) should be used. This is made in triplicate, one copy for filing 
by order in the cost department for costing purposes, one in the plan- 
ning department for planning and efiiciency records, and one to be 
used by the man. Dispatching boards are to be used in connection. 
Fig. 22 shows the method as used in one installation. At the machine 
and floors are to be placed small two-clip boards for holding service 
cards. The top clip on all boards is to hold jobs being worked on. The 
lower clip is to hold next job tickets. It is a good plan, to have on the 
boards in the planning department a third or bottom clip to hold tickets 
covering jobs to follow the "next job " tickets, these to be arranged in the 
order that work should be undertaken. In this way the process is con- 
tinuous. As soon as a man completes the job he is on, the card in the 



I! 



THE PLANNING DEPARTMENT 



129 




Fig. 22. Dispatching Boards for Holding Service Cards 

second clip goes to the top clip, while the top card in the third clip is 
moved up to the second clip. An important rule to observe in this connec- 
tion is that men are to turn in their tickets at night, stating what they have 
finished, and continuation service cards are to he made out and posted on 
the hoards for the men when they report in the morning. Decimal time 
should be used in calculating time, which is to be expressed in hours 
and tenths. See Fig. 24 for illustration of a decimal clock, made from 
an ordinary dollar clock. 



130 



INTRODUCING EFFICIENCY PRINCIPLES 



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THE PLANNING DEPARTMENT 



131 



With this all too brief description of the time-keeping methods, 
we can proceed to the plan used in assembling the facts. The form 
shown in Fig. 23, the "planning sheet," can well be considered the hey 
to the whole work of "planning and is the result of several years of study, 
experiment, and actual practice. It is easier to use the sheet than to 
describe it intelligently, but a careful study of the procedure will be 
well rewarded. 

On these sheets "available work" only is entered, and as the term 
has two meanings, we must make the distinction clear: 

1. A job having six operations is available if the material is on 
hand hut only as far as the starting operation, 

2. All operations following the first are available only ivhen they 
receive from the preceding operations all or part of the work called for. 

Let us briefly consider the basic principle of the planning sheet 
before we attempt to explain the entries on the form illustrated. As- 
sume that operation times are 10 hours and 16 hours, as shown in the 
graph below : 
Pes, This operation Next operation Ratio 



50 



2 



Safe 
Yes No 



1.6 



V^ 



The Engineering Magazine 

(Note: Figure 2 means that the value of each space is 2 hours instead of 1 hour.) 

which means from the rule governing the selection of succeeding op- 
erations as laid down in the preceding paper, that the ratio is 16:10 
equals 1.6, or for every hour worked at "this" operation 1.6 hours 
of work are released to the ''next" operation. Why not enter work to 
succeeding operations as released? 

Assume that the workman on "this" operation does 4 hours of 
work. Multiplying 4 hours by 1.6 equals 6.4 hours for the "next" 
operation. In other words, we credit for 4 hours and charge for 6.4 
hours which we can show graphically as follows: 



Available 



This operation 



xxxx 



Equals 6 hours as balance to do 



Next operation 



Equals 6.4 hours to do 



The Engineering Magazine 



(Note: The Figure 2 is used as prefix because 16 hours will be entered when work is completed.) 



132 



INTRODUCING EFFICIENCY PRINCIPLES 



A brief description of the procedure is now in order. Each ma- 
chine gang or man is to have a planning sheet, which is to cover the 
work of a week at a time. No work is to be entered on the sheets 
that is not available as defined in the first definition given above. 

When available work is selected for starting, the information 
covering the first operation only is to be entered on the planning sheets. 
Succeeding operations will be entered as work is released from pre- 
ceding operations. In making an en- 
try, the order number, sheet and item 
numbers, drawing number, piece, and 
description of items are to be entered. 
Under "this operation" is to be en- 
tered the number of units* and the 
total time. Under "next operation" 
is to be entered total time, units, name 
of operation and where work is to be 
done. 

Times for both this and next opera- 
tions are to be expressed by lines each 
space equaling one hour. In cases 
where the time is greater than 10 an 
index figure is to be placed at the left 
of the line, indicating that the value 
of each space is one hour multiplied by 
the index figure. To show 34 hours, 
a line would be drawn through 83^ spaces prefixed by the figure 4. 

Because the selection of a succeeding operation depends entirely 
upon the relation between its time and that of the preceding operation, 
the ratio between the two should be established in all cases. 

The amount of work available in time should be shown by a line 
under "available." For starting operations this would equal the 
times entered under "this operation" unless some part of the material 
was not available. For succeeding operations the amount of work 
available in time would depend upon what was released from previous 
operations. For work done at any operation the amount available 
for a succeeding operation would be: 

Hours of work done X Ratio = Hours of work available for succeeding operations. 

If the ratio was 0.7 to 1.0, indicating that for every hour of work 

done 0.7 of an hour is released, and if the work completed in time 

* By units is meant structural-shop units, such as 100 rivets, 20 feet caulking, 50 holes, etc. 




Fig. 24. Decimal Clock 



THE PLANNING DEPARTMENT 133 

was 6.7 hours, 4.7 hours would be available for the succeeding opera- 
tion. If it is not safe to schedule succeeding operations, a check mark 
is to be placed under *'No." When a job is safe to start, the approxi- 
mate date and time are to be entered under ''Yes." If this cannot be 
done, at least enter a check mark under "Yes." 

As jobs are selected for starting, a line is to be drawn under the 
proper day opposite the item to be worked upon. The starting 'point 
is to depend upon previous work planned for the same day. Its length 
is to depend upon how long the shop management wants a gang or 
machines to work on the operation. Entries are to be made in pencil. 
If a change is necessary after the planning has been done, the line 
can be erased and a new one drawn. 

Upon completion of work as shown by service cards turned in, 
entry is to be made on planning sheets. Entry will be on the prin- 
ciple that any work completed at one operation is available in whole 
or in part for the next operation. Therefore, for any given operation, 
the time as shown by the service cards is to be entered in the form of 
a dotted hne under the proper hne scheduled for the day, and then 
crossed from the hne under ''available," which will then show the 
net time now available. The number of pieces and units of work 
completed are to be deducted and correct balances sho^\Ti. 

Information under "next operation" will now be noted and trans- 
ferred to the sheet covering the gang or machine that is to perform 
the next operation. The time turned in covering the operation just 
completed is to be multiphed by the ratio factor, and the result drawn 
under "available" in the sheet covering the "next" operation. Check 
marks are to be placed in front of the lines showing scheduling for the 
day, when the men start work. 

From this detailed description, the entries on the planning sheet 
illustrated can be easily followed and understood. The sheet shows 
that the scheduling for Monday, Tuesday, and Wednesday was fol- 
lowed as planned. Further, on Thursday morning the scheduling 
has been arranged to carry through until 9 o'clock on Saturday 
morning. 

An advantage in using the sheet as described is that it makes no 
difference in what order the various items are entered on the sheets. 
The lines under the proper day show the selections, and the relative 
positions determine the sequence of jobs. Further, if jobs have been 
scheduled and change must be made, no rewriting is necessary. Simply 
rub out one line and draw it somewhere else. 



134 



INTRODUCING EFFICIENCY PRINCIPLES 



The question how the planning is done is now in order. There 
are three ways of planning: 

1. To let the planning department do all the planning in an ar- 
bitrary manner, the shop simply performing the work as outlined. 

2. To let the shop do all the planning, the planning department 
simply acting for the shop in a clerical capacity. 

3. To strike a happy medium between the two. 

A planning department will never know it all. Neither does the 
shop have a "corner" on all the knowledge that is available. A com- 



Eorm 158-5'26-l«-500-N 



MEMO OF CHANGE IN SCHEDULE 



TO PLANNING DEPT 

NEXT JOB SCHEDULED FOR 



MAN NO. 




MACHINE NO. 


GANG NO. 



IS ON ORD. N0» 



JOB NO. 



OPERATION- 



FOR MAT'L 



ON SHEET— 



ITEMS- 



CHANGE 



iNVESTlGATION 



IT WILL BE NECESSARY TO CANCEL THIS 
SCHEDULING AND SUBSTITUTE 
IN ITS PLACE 



REASON FOR THIS CHANGE HAS BEEN 
INVESTIGATED AND FOUND 
TO BE 



ORD. NO^ 



OPERATTON 



- JOB NO- 
SHEET 
ITEMS- 



MATL 

FOR THE FOLLOWING REASON: 



DATE 



SIGNED 



FAULT OF 



DATE 



SIGNED 



The Engineering Magazine ' 

Fig. 25. Form for Authorizing Change in Scheduling 

promise is therefore in order. The planning department should correct 
the planning sheets each morning from the service cards turned in 
by the men the night before, and from its knowledge covering customers^ 
orders, "progress, congestion, etc., tentatively schedule the work for the 
next day. At 9 or 9.30 a. m. have the shop heads meet the planning 
supervisor and dispatcher and discuss the plans made. If good reasons 
exist for making changes, they can be made with dispatch and the 
planning can in this manner be done in a minimum of time. At 4 o'clock 
each day the shop superintendent and the planning supervisor should 
meet and outline to the dispatcher the general procedure to follow 
the planning decided upon at the morning meeting. This is virtually 



THE PLANNING DEPARTMENT 



135 



Form 160-5-26-13-500-N 



OVERTIME AND NIGHT WORK 



TO PLANNING DEPT. 



ORD. NO^ 
MATL» . 



IN ORDER TO MAINTAIN SCHEDULE OF 

JOB HQs OPERATION. 

— SHE ET 



!T WILL BE NECESSARY FOR 



MAN NO. 




MACHINE NO> 


GANG NO. 



TO WOR 



■I 



ALL NIGHT 



-ITEMS- 



— HOURS OVERTIME 



FOR THE FOLLOWING DATES 



SIGNED BY 



DATE 



ARRANGED 
FOR 



TTie Engineering Magazine 



Fig. 26. Form for Authorization for Overtime and Night Work 



Form 151-5-26'-l3-1000-N 

MATERIAL MOVE ORDER 


ORDER DWG. 

NO. NO. OPERATION 


MOVE 


FROM 


TO 


NO. 


DESCRIPTION 


SHEET 


ITEM 


MACHINE 


MACHINE 










FLOOR 


FLOOR 


BENCH 


BENCH 


DEPT. 


DEPT. 


WAREHOUSE 


WAREHOUSE 


YARD 


YARD 


WANTED 




RECEIVED 




AVAILABLE 




DATE TIME 


A.M. 


DATE TIME 


A.M. 


YES 
NO 




P.M. 


P.M. 



























The Engineering Magazine 



Fig. 27. Form for Requisition for Moving Materials 

planning in the morning for the next day, and in the afternoon for 
the day following. 

After the scheduling has been arranged for, any change desired in 
the plans before the next meeting must be on a requisition made, by 
the shop. Fig. 25 is shown to explain the procedure. The reasons for 
the change are investigated by the planning department. 



136 



INTRODUCING EFFICIENCY PRINCIPLES 



If overtime or night work is going to be necessary, the shop or the 
planning department can arrange for it on authority when the form 
shown in Fig. 26 is properly filled out. 

Because the planning department must control the movement of 
material to starting operations in order to plan most intelligently, it 
must make out move orders (Fig. 27) from the planning sheets, sending 
these orders to the material supervisor, who will arrange for the moving 
of material from and to the proper place at the proper time. 

Because there are bound to be variations in times worked as against 
times scheduled it may be well to explain how this is handled. Assume 
that scheduling is as follows: 



and that instead of taking 4 hours on the first item the man takes 5 
hours. The entries wouM be changed thus: 



If he took 3 hours the arrangement would be: 



^x 



X 



X 



The Engineering Magazine 



The thing to do is to assign the work where it should go, and as 

soon as congestion is noticed steps can be taken to relieve the situation. 

Reference to the planning sheet will show the following information: 



Operation 

A 

B 

C ♦ 

D 



Work to do 


Work 


this operation" 


Available 


Hours 


Hours 


83 


83 


38 


-9.5 


45 


6.8 


30 


17.0 



196 



116.3 



which shows that there is less than a day's work at machines B and C 
and over a week's work at machine A. Consequently, to relieve the 
situation, work on 5341, operation A, has been transferred to machine 
724 as shown. This is not only extremely valuable in keeping close 



THE PLANNING DEPARTMENT 



137 



watch over congested places hut answers the objection often advanced 
by shop men that out of a number of machines they do not know to which 
to assign certain work. 

To keep in close touch with this important matter of congestion, 
an "operation control board" can be used to decided advantage. 
Fig. 28 is a picture of a control board. Machines and gangs are to be 
listed across the top. Down the left-hand side are to be shown hours, 




Fig. 28. Operation Control Board 

with holes at regular intervals for inserting pegs. White elastic string 
is used to slip over the pegs. In the illustration it will be noticed that 
machines 1-8-23 and 52 are loaded to the limit, while 2-3-7-25-32- 
34-39 and 40-45-49 have practically nothing ahead of them. The 
board is to be rearranged at least once daily. 

The reader no doubt has several questions in mind. What governs 
the planning.^ What shows that certain orders need crowding.^ Ad- 
mitting that the charting advocated in the preceding chapter shows 
starting and finishing dates, how is the progress between these dates 
watched? Considerable thought given to these same questions has 




138 INTRODUCING EFFICIENCY PRINCIPLES 

resulted in a method of control which will be found of pronounced 
value. My idea from the start was to ascertain if possible the ''normal 
line of progress" or flow, against which could be measured the actual 
performance, which would disclose variations. 

The principle finally adopted can best be explained by a triangle 

in which the horizontal line BC represents the days in which work 

20 days c ^^^ be done, and the vertical line AB the hours 

that the work will take. The hypotenuse AC 

represents the normal line of progress. If 10- 

hours work is done each day the actual line will 

follow the normal line. If more or less is done 

each day the actual line will be above or below 

the normal line. 

-^ To show the practical application of this 

The :Engineering Magazine priuciplc Ict US assumc (Fig. 29) that au ordcr 

is received October 2, is wanted November 20, and promised for 
December 1. Between October 2 and December 1 are 51 working 
days. By taking an ordinary sheet of profile paper to be called 
the "order control sheet" and letting each horizontal space equal 
one working day, lines D and Dl can be drawn to show date 
of receipt of order and date of promise. Assume that the time 
to make the order is 205 hours. Calling each vertical space 5 hours 
enables us to draw in E-E1-E2, the difference between El and E2 being 
a margin of 30 hours to use in case work should take more than 205 
hours. So far we have drawn in but 5 lines. Assuming further that 
blue prints and bills of material are received October 11, that the job 
is analyzed October 12, that it is scheduled October 18, that material 
is ordered October 4 and received October 18, and we can draw ver- 
tical lines 1-2-3-4-5. Work is started October 20, so a heavy line is 
drawn fron A to B. This is the ''working time" line. A heavy line 
is then drawn joining B and C, which is the "working days" line. 
A and C are then joined by a heavy line. This all becomes the "manu- 
facturing angle" with line AC as the "normal line of progress." 

As time is turned in each day against an order, it is entered on 
control sheet, the line X-X showing the actual progress. It will be 
noticed that on November 3 the work was 35 hours behind schedule. 
On November 10 it was practically 25 hours ahead of the schedule, 
while on November 24 work was 30 hours behind the schedule. In 
other words, on any particular day a glance at the control sheets will 
show whether work is ahead of or behind the normal schedule. 



THE PLANNING DEPARTMENT 



139 



ORDER NO. ;^/4^6"'cUSTOMER 




'^.QUANTITY "^O ARTICLE -/'^S''*S 



October 



November 



Dec. 






DELAYS 
CJongestion 
NoMatl. 
Break Down 
Not Wanted 
Man Not In 
Not Scheduled 
Eng. Dept. C 
Scarcity of Men 



200 - 



EGI 
C 

D 150 



H £ 
ABF I 



H 



100 



K 











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C.E.Knoeppel Tne.E7igineering Magazine 



Fig. 29. Order Control Sheet 

The dotted line ending at Y shows the amount of work scheduled 
so that work could be finished on time, as follows: 

November 22 20 hours 



24 
25 
27 



20 

15 

JL5 

70 



How well this schedule was maintained, however, is shown by 
comparing it with the actual line of progress beginning at the point 
when the dotted line started. 

In order to keep in touch w^ith all the facts in connection with the 
work it was also decided to show on the chart reasons why no work 
w^as done on certain days. A list of causes is placed at the left of the 
chart, and by using a key letter reasons can be inserted at the proper 
place. For instance, on October 21-22-23-24 and 25 no work was 
scheduled. On October 28-29-30-31 no work was done because of 
a lack of material due to error of the engineering department. On 
November 7 there w^as a breakdown. On November 11 and 12 con- 
gestion of work caused a stopping of work. On November 20 work 
could not proceed on account of congestion. On November 21 and 22 



140 INTRODUCING EFFICIENCY PRINCIPLES 

the workman did not report and owing to scarcity of men the work 
had to wait. On November 28 and 29 congestion again made it neces- 
sary to stop on the order. 

It will be noticed that when Dl line was reached the work was 30 
hours behind schedule, and that the job was not finished until 6 days 
after line D2, taking 10 hours more time than was estimated, an effi- 
ciency of 95.2 per cent (205 -^ 215). 

Each sheet is valuable in itself, but consider the possibilities when 
on file in one place are all control sheets covering work ahead of schedule 
and on file in another place are all orders behind the schedule. It 
places one in control of the entire activities of a plant. One manager 
went so far as to say that the control sheets were too valuable to be 
filed anywhere but right in his desk. 

After completion of orders, the control sheets can be analyzed to 
advantage. In this case why did 15 days elapse between receipt of 
order and starting in the shop.^^ Why did it take 12 days to get the 
material .f^ Why did it take 8 days to get the prints? What caused 
the delay of 6 days before completion, when enough work was scheduled 
to finish the job on December 1.^ Wide variations between the actual 
and estimated times can also be analyzed. 

In getting the work started the first thing to do is to get new orders 
analyzed and written up on the planning sheets, at the same time 
putting the time-keeping methods into operation. From the returns 
each day, cancel for times worked; from the planning sheets, enter 
work released to succeeding operations. Keep this up until the work 
on the planning sheets represents all the work in the shops. Then 
call the first meeting and start the real work of planning. Control 
sheets can be started with the first order analyzed. The essentials 
are as before outlined — analysis, material control, time keeping; and 
with these as a basis, the use of planning and control sheets will work 
wonders in the shop. 



Chapter XIV 
THE PLANNING DEPARTMENT— AUXILIARY DEVICES 

THE aim of the two preceding chapters on the planning depart- 
ment was to describe as clearly as possible what planning is 
and how it is' done. There may be many cases, however, 
where the procedure outlined does not exactly meet the peculiar 
conditions met with, or where additional records are necessary. In 
this supplementary chapter on planning it is the purpose to consider 
certain auxiliary devices that might be employed in the actual work 
of introducing better methods of scheduling and routing orders through 
the plant. 

Production Order 

It is often a good plan, in organizing the work of planning, to use 
a production order, for the purpose of systematically keeping in touch 
with work under way. A production order form is shown in Fig. 30, 
A, B, and C. The original is held in the office, the duplicate acts as 
a material requisition for the first lot delivered and as a move order 
for succeeding lots, while the triplicate is used as a routing card and 
accompanies the work as a means of identifying the parts in their 
progress through the works. 

Boiler-Shop Material Card 
The service card described in the preceding chapter usually covers 
one item or part. It often happens, as for instance in structural-shop 
practice, that a number of different items or parts may be worked 
upon at the same time. To cover this condition, a set of material 
cards (Fig. 31, thin paper) are written up, one for each operation; 
one for the planning department, one for the stock room and one 
covering the movement of material. A set would be covered by one 
labor service card. In other words, this material card is a bill of ma- 
terial showing just what is to be worked upon. Form 31 is shown on 
page 143. 

141 



PRODUCTION ORDER 


ORDER NO. 


NAME OF ITEM 


TYPE 


QUANTITY 


SYMBOL NO. 


WANTED 


FIRST 
OPERATION 


DRAWING NO. 


SHOULD 
START 


FINAL 
DELIVERY 


FOR ENGINE NOS. 


OTHER ORDERS 
EFFECTED 


remarks: 



The Engineering Magazine 



R MATERIAL REQUISITION MOVE ORDER M 


ORDER NO. 


NAME OF ITEM 


TYPE 


QUANTITY 


SYMBOL NO. 


WANTED 


FIRST 
OPERATION 


DRAWING NO. 


SHOULD 
START 


FINAL 
DELIVERY 


FOR ENGINE NOS. 


OTHER ORDERS 
AFFECTED 


MAT'L REQD. 

Date 

Time 


R.orM. 


IN LOTS OF 


SIZE AND 
KIND 


PCS. 


FEET 


LBS. 




MOVE 


MAT'L DELIVERED 

A.M. 
Date P.M. 








FROM 


TO 


Machine 






Machine 






BALANCE TO 
SCHEDULE 








Floor 




Floor 




Man 




Man 




Yard 




Yard 




RECEIVED 

Do-fa t;«^ o.. 


Dept. 




Dept. 




Stk.Rm. 




Stk.Rm. 


























oy 


1 



























The Engineering Magazine 


ROUTING CARD 


ORDER NO. 


NAME OF ITEM 


TYPE 


QUANTITY 


SYMBOL NO. 


WANTED 


FIRST 
OPERATION 


DRAWING NO. 


SHOULD 
START 


FINAL 
DELIVERY 


FOR ENGINE NOS. 


OTHER ORDERS 
AFFECTED 


MAT'L REQD 

Date 

Time 


R.orM. 


IN LOTS OF 


SIZE AND 
KIND 


PCS. 


FEET 


LBS. 




MOVE 


MAT'L DELIVERED , „ 

A.M. 

Date P.M. 








FROM 


TO 


Machine 






Machine 






BALANCE TO 
SCHEDULE 








Floor 




Floor 




Man 




Man 




Yard 




Yard 




RECEIVED 

Dnfo T:»^ D.. 


Deot. 




Deot. 




Stk.Rm. 




Stk.Rm. 


























"J 


1 



The Engineering Magazine 



Fig. 30, A, B, C. Production Order. Made Out in Triplicate 

A, the Production Order, and B, the Material Requisition, are thin paper. C, the Routing Card, 
IS a stiff cardboard to make a back for writing upon. They are edge-gummed together in sets. 

142 



THE PLANNING DEPARTMENT 



143 



BOILER SHOP MATERIAL CARD 



ORD. 
NO. 



DWG. 
NO. 



GROUP 
NO. 



JOB 
NO. 



FROM 



THIS 



WANTED 



NEXT 



OPERATION 
NAME 



OPERATION 
NAME 



TIME 



MACHINE 



GANG 





A.M. 




P.M. 



OPERATION 
NAME 



MACHINE 



GANG 



B.M. 



SHEET ITEM 



PCS. 



DESCRIPTION OF MATERIAL 



LENGTH 



MATL. 



MAT'L. RE.C.EJVED.BY 



DATE 



TIME 



Ike Engineering Magazine 



Fig. 31. Material Card for Boiler Shop 



Part Planning Schedule 
It is often a good plan when a large number of parts are to be 
taken through the plant, to schedule these parts as shown in the form 
reproduced in Fig. 32. It shows what has been scheduled and what 
is finished from day to day, with provision for showing whether pro- 
duction is ahead of or behind the schedule, as well as the efficiency 



144 



INTRODUCING EFFICIENCY PRINCIPLES 



MACHINE SHOP PLANNING SCHEDULE 


UNITS 




ITEM 


QUANTITY 


GROUPS 




TYPE SYMBOL 


ORDER 
NO. 


PARTS 




WANTED BY 


DATE 
ISSUED 


Requirements / O'-O—O 


Days Allowed / ^ 


On Hand ^ ^ O 


Rate Per Day / -^ 


Balance to Schedule / ^ CJ 


Time Per Piece CJ ^ 77> 


SCHEDULE 


FINISHED 


EFFICIENCY 


REMARKS 


Date 


Per 
Day 


Total 


Per 
Day 


Actual 
Time 


Total 
Pes. 


Bal. 


Ahead 


Behind 


Percent 


^// 


7r 


7-r 


7r 




1y 












X- 


7f 


/^o 


fd 




/>/ 






^J 






3 


yr 


^>:r 


7^0 




/jy 






S-Q 






y 


7^ 


ixXTT 


7f 




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So 






/" 


7^ 


5'/S' 






7:7o 






/>-$- 






7 


/r 


"770 


/&tr 




3 To 






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r 


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S>f 


^7 




577 






/yo 






9 


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37/ 






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// 


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So 




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( 


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S'75 


/ 


7 / 


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ff/ 




v-r> 




fo. ( 


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/ ' 





































































































Fig. 32. Part Planning Schedule 



The Engineering Magazine 



THE PLANNING DEPARTMENT 



145 



o ' o 

SHOP ORDER 


THE FOLLOWING WORK IS NECESSARY IN DEPT. 


NATURE OF WORK 


• 


SHOP ORDER NO. 8500 




CHARGE ACCOUNT NO. 






NECESSARY WORK TO COMPLETE 


DRAWINGS 




MACHIJVJE WORK 




PATTERNS 




BOILER SHOP WORK 




CASTINGS 




CARPENTER SHOP WORK 




FORCINGS 




YARD WORK 




SIGNED 


APPROVED 


NAME 


NAME 


DATE 


DATE 


NOTE -To MADE OUT BY FOREMAN FOR WHOSE DEPARTMENT WORK IS TO BE DONE AND UPON 
APPROVAL, ORIGfNAL FORWARDED TO PLANNING DEPARTMENT 



Ttic Engineering Ma4fa2in4 



Fig. 33. Shop Order 



146 



INTRODUCING EFFICIENCY PRINCIPLES 



EQUIPMENT REQUISITION 


COVERINtl 


MOULDING MACHINES |~n 


CORE BOXES 
JIGS AND TO 


^ 




METAL PATTERNS | | 


OLS 




MATCH PLATES 


u 


— 




FOR DEPT. DATE 


MAKE 

FOR USE ON 


PRESENT COST OF DOING 
ONE PIECE 




IS WORK SPECIFIED ■< STANDARD 

( SPECIAL 






EXPECTED SAVING PER 
PIECE 




IS DESIGN LIKELY J yes 
TO BE DISCONTINUED } no 






APPROXIMATE NO. PIECES 
YEARLY 




IF YES WHEN 


HOW MANY 
PCS. IN MEANTIME 




YEARLY SAVING 




DO YOU FAVOR S YES 
DOING ABOVE ) no 






EST. COST LABOR 




REQUISITIONED BY 


" " MATERIAL 




APPROVED 

BY DATE 


LABOR -f MAT. TOTAL 




STARTED /INISHED 



Fig. 34 



The Engineerino Vctgoxin^ 



when the time is up. An examination of the entries will clearly indi- 
cate the method to follow in using this record. This method can also 
be successfully applied to foundry work. 



Shop Order 
It often happens, in planning, that work covering repairs and 
replacements interferes with the efficient carrying out of the plans made, 



THE PLANNING DEPARTMENT 



147 



DATE SA ^ 

/ DAILY SCHEDULE FOUNDRY DEPT, 


NAMES OR 
FLOORS 


y.o(^ Ajlxj-^c.ji^ 


NAMES OR 
FLOORS 


XO. 
PCS. 


ORDER/>- 
No. 


WORK 


PATT. 
No, 


SCH. 
No, 


STD. 
TDIE 


XO. 
PCS. 


ORDER 

No. 


WORK 


PATT. 

No. 


SCH. 
No. 


STD. 
TIME 


/o 

S' 
/ 

7- 


/6y-o 




A/6 
J /6 


^7 


S-.o 

^.0 


- 














/3.0 































Fig. 35- Planning Sheet for Foundry 



The Engineering Magazine 



because there is no systematic method of handhng this class of orders. 
Too much repair work is handled on verbal orders and this often 
means changes in schedules at a moment's notice. To take care of 
this class of work in a systematic manner, the shop order, Fig. 33, 
can be profitably used. It is made out in duphcate by the person 
wanting the work done and sent to the manager or superintendent 



TIME 



MAN NO. 


NAME OF MAN 


7 8 


9 10 11 


L2 

12 3 4 


5 6 


_L 






1 1 1 ! 1 


1 




1 1 M ' 1 II 


1 1 M 1 1 M 1 il 1 1 1 ' 1 { 


II ! Inll M 






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1 __U^o_L_l_ii 


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1 i 1 '2! 1 1 1 




P 






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?^^:::::i:::: 


•>140 1 "''' 


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h/ 




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2lZi 


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' { Each small space = 0.2 Hours ) 




















1 
























'• 1 






































































































































































































































































































































































L 


















OPERATIOJMS AJND DELAYS L 




















L 










?,- Fit Shfift" 








fnrinl for "J .t 3 L 




























B - '^ rong 


frames brouiht in 1 










" 3- Attach Collars rTT 




1 










- 4 - Place Main Bea 






C - Waitin 


g lor material [_ 
















ough material to keep going- 










t\ - Fit ATain Rp^ri 






















- fi7 _ .. .. (I 










: 6- Put on Clutch 






^ " L 


■ 












F - Parts 1 


or ■> machined wrons L 










t - r It Cnam opro 


ckets 














J. 8 ~ Attaching Spriu 






G - WaitiE 


K for drawinES L 














1 










I 1 1 1 1 1 1 1 1 1 I 1 1 : 1 1 : - ' ■; i : i i M 




x: in 


1 








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:±t r, M M M 












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1 1 








_. i i ^ 1 M i 1 M 1 1 M 1 1 1 1 1 1 1 1 i i 1 i M 1 1 1 


__!__ 


1 1 




X 





Tht Engineering Magazint 



Fig. 36. Record of Assembly Time 

The small squares should be printed in light blue. 



* 



148 



INTRODUCING EFFICIENCY PRINCIPLES 



DEPARTMENTAL DELAY REPORT 


FROM PLANNING DEPTTO DEP'T DATE. 


WORK WILL FALL BEHIND SHOP SCHEDULE UNLESS FOLLOWING 
MATERIAL ISFURNISHED PROMPTLY 


ORDER NO. 


JOB NO. 


SHEET 


ITEM 


PCS. 


WORK 


MAT'L 


REASON 


TO BE 
FINISHED 































































































































































































































































Fig. 37. Delay Report 



The Engmeering Magazm» 



00 

CONDITION OF ORDERS 


NUMBER 
PIECES 


ORDER NUMBER 


NAME OF PIECE 


PRINT OR PATTERN 


DEPARTMENT 


ISSUED 


WANTED 


NOT 
READY 


READY 


LOCA- 
TION 






























































































































































































































































































































































































































































■ 

























































































































































































































Fig. 38. Progress of Work Report 



27kfi Engineering Magasint 



THE PLANNING DEPARTMENT 



149 



NOTIFICATION OF NEXT JOB 



TO 



DEPT. 



MAN NO. 




MACHINE NO. 


GANG NO. 



JOB NO. 
STARTED WORK ON ORDER NO. 



AT 



DATE 



OPERATION 



MATL. 



AND IS SCHEDULED FOR 



.HOURS WORK 



NEXT JOB 



IS ON ORDER NO. 
MATERIAL 



JOB NO. 



OPERATION. 



.SHEET- 



.ITEMS. 



WITH 



HOURS WORK TO DO AND UNLESS CHANGE IS MADE IN SCHEDULE 



EVERYTHING SHOULD BE IN READINESS FOR THIS JOB BY APPROXIMATELY 





A 1^. 




P. M. 



DATE 



DATE 



PLANNING DEPT. BY 



27i» Engineer in !/ Magazine 



Fig. 39. Notification of Next Job 

for approval. If approved, the original is sent to the planning de- 
partment and the duplicate to the one making it out. The planning 
department then arranges for scheduling this work. If not approved, 
however, the original and duplicate are returned to the source. 

Equipment Requisition 

What was said of repairs is equally true, of additions and per- 
manent betterments. It will be found that this work is often handled 
in a loose way. Fig. 34 shows an equipment requisition. It provides 
for requisitioning what is wanted, with a provision for showing the 
possible savings to be made and such additional data about design, 
etc., as to enable a manager to determine whether or not to approve 
the requisition. This record is handled in the same manner as the 
shop order. 

Foundry Planning Sheet 

In the preceding paper a planning sheet was shown that cannot 
be used in the foundry, as it was designed to cover work having a 
number of operations in sequence, like machine-shop and structural- 
shop work. Fig. 35, however, shows a planning sheet designed for foun- 
dry work. The names of moulders or floors are shown under which 
are placed the data concerning the work to be done. Entries are to be 
made in the order in which work should be made. The core room 



150 



INTRODUCING EFFICIENCY PRINCIPLES 



ROUTING CARD 



ORDER NO. 



DATE OF ORDER 



NAME OF PART 



NO. 



QUANTITY 



DRAWING NO. 



OP. 
NO. 



NAME OF OPERATION 



MACHINE 



PCS. 
DELVD 



PCS. 
FIN. 



PCS. 
GOOD 



RECEIVED 
BY 



FINAL DELIVERY 
RECEIVED BY 



PCS. 



DATE 



Fig. 40. Routing Card 



The Engineering Magazine 



can be scheduled in the same manner, if it is found necessary, but 
if the planning is done early in the morning, for the next day, a copy 
of this schedule given to the core room will be all that is necessary 
for the core room to make and have the cores ready when they are 
wanted. 

Assembly Time 
An excellent means of keeping close track of assembly time is 
shown in Fig. 36. An analysis of the entries will clearly indicate how 



THE PLANNING DEPARTMENT 151 

valuable such a report is. The operations are listed at the bottom, 
in the order in which they should be performed. A provision is also 
made for showing the reasons for delays. Operations are indicated 
by numbers and delays by letters. For instance, man 221 (James) 
on order 2140, operation 2, was unable to finish his work because of a 
lack of material (a) and he could not go to work on operation 3 for 
the same reason. Note further that he worked on order 1620 from 9 
until 3, starting on operation 3, then operation 1, and then on opera- 
tion 4, finishing 10 pieces and being delayed 25 minutes at (b) because 
wrong frames were brought in. At 3.25 he began the completion of 
what he started on in the morning, fitting shafts on order 2140, com- 
pleting 10 pieces. Note Wilson's delay of 30 minutes because he did 
not have a sufiicient supply of material. Note Gregg's two delays, one of 
25 minutes because he had no material and one of 50 minutes because 
the parts were machined wrong. It will also be noticed that Noble 
had to change his work three times because of lack of material, and was 
delayed on account of there being no drawing available. By setting 
down the date when work is started on an order, adding the hours 
worked upon it, reducing the man hours to gang hours, and subtract- 
ing the total from the total time elapsing between the time work was 
started and the time when it was finished, we shall obtain a difference 
representing the time the work was on floor without being worked 
upon — a most important thing to know. 

Departmental Delay Report 
It is an excellent plan to keep the shops advised when work falls 
behind schedule, as shown by the analysis sheets (Chapter XII), the 
control sheet (Chapter XIII), or the schedule shown in Fig. 32, this 
chapter. A delay report covering such cases is shown in Fig. 37. 

Condition of Orders 
Another means of keeping in touch with the progress of work is 
shown in Fig. 38. As orders are received they are entered in this rec- 
ord, the number of pieces being marked in pencil. Each day from the 
service cards turned in, the number completed is deducted from the num- 
ber wanted, the old balance rubbed out and the new one entered. This 
constitutes a perpetual inventory of orders all grouped in compact form. 

Notification of Next Job 
It is often a good plan to keep foremen advised of what is to follow 
the work in process. After planning is decided upon, it will assist 



152 INTRODUCING EFFICIENCY PRINCIPLES 

the foremen materially to keep them advised of the next jobs through 
use of the form reproduced in Fig. 39. 

Routing Card 

Good reasons may often exist for inability to use the move order 
suggested in the preceding chapter. When it cannot be used, a routing 
card is an excellent substitute. This is made out in the planning de- 
partment and sent to the stock room when the order is released, and 
follows the routing prescribed. If the order calls for 500 pieces and 
the stock room delivers 100, the routing card would show this. If 
out of this 100, the first department finishes 50, the card should show 
this as well as accompany the 50 pieces. See Fig. 40. 



I 



:f 1 



Chapter XV 
STANDARDIZING THE WORKING CONDITIONS 

AT the top of the back of each seat in the Metropohtan Opera 
House, in New York City, is placed the number of the exit 
which the person sitting directly behind is to use in case of fire 
or panic. Each exit is, prominently marked and can easily be located. 
This is standardizing a condition, with the aim of preventing confusion 
and waste. 

To industry this standardization of conditions means much more 
than is at first apparent. Let me illustrate. Fig. 41 is a cut of a hand 
milling-machine, designed to mill the throats of the part shown by 
the arrow. The workman in operating the levers marked A, found 
that he could not see w^hat he was doing because the ear B hid the 
milling cutter C He also had to pick up a wrench from bench F to 
clamp the piece in the machine, and again when taking the piece 
out of the machine. Time studies revealed the following data: 

Minutes per Piece 

1. Going around machine and looking at piece. . .13 

2. Number of looks per piece 1 . 65 

3. Time looking at throats 2145 

4. Picking up wrench and clamping piece 12 

5. Picking up wrench and releasing piece 09 

Total of 3, 4 and 5 4245 

The total operation was made up of the following: 

Minutes per Piece 

Looking and handling wrench 4245 

Cutting metal 217 

Piece in machine 05 

Piece from machine 05 

Total 7415 

Study was applied to 3, 4 and 5 in an effort to decrease the times 
on this part of the work. Two things were developed: 

1. A mirror was attached (borrowed from the automobile) tilting 

153 



154 INTRODUCING EFFICIENCY PRINCIPLES 

back and forth and sideways, enabling the operator to see what he 
was doing without leaving the levers. See E. 

2. A lever and spring clamp, with the base of the lever riding 
on a curved boss, was installed, enabling the operator to tighten or 
release by simply pulling or pushing the handle. See D. 

What was the result? Note the following comparison: 

Old Way New Way 

Minutes Minutes 

Piece in .05 .05 

Tightening piece 12 .05 

Cutting metal 217 .217 

Looking .2145 .07 

Releasing piece 09 .03 

Piece out , 05 .05 

Total 7415 .467 

Efficiency of old way on complete operation: 

.467 

= 62.9 per cent 

.7415 ^ 

Efficiency of old way on the elements changed (3, 4 and 5): 

(.05 + .07 + .03) 

; = 30 . 6 per cent 

(.12 + .2145 + .09) ^ 

The first illustration shows what standardization is; the second 
outlines how it is done. The steps are: 

1. Time study or careful investigation. 

2. Analysis of data. 

3. Finding the waste. 

4. Devising methods to eliminate the waste found. 

5. Installing the betterments. 

With the above as a basis we are now prepared to go into the 
plant on a larger scale. Before we do so, however, a few words are in 
order regarding the distinction between conditions and operations. 
The term "operations" means the actual work of machining or mould- 
ing or riveting, as performed by man or machine. The term "con- 
ditions" means the arrangement of facilities and factors making 
possible the machining or moulding or riveting. There is no confusion 
about this; the distinction is clear cut. The work of setting work in 
and taking out of machines is, of course, part of the operations. So 
is the use of a jig and the adjusting of a machine to take the right 
cut at the right speed. But the designing of jigs and the determina- 
tion of speed, feed, and cut combinations are not part of the operations 



i 



STANDARDIZING THE WORKING CONDITIONS 



155 



according to the above definition, yet so closely associated as to make 
it next to impossible to divorce them from operations. The using of 
a cutting tool is clearly part of the operation. The forging, tempering, 
and grinding of this tool, however, are not. Considerable latitude 
must therefore be allowed in the definition, which after all is not 
nearly as important as the real work of standardizing. In this dis- 
cussion matters will be considered as conditions which may come 
close to classifying as op- 
erations, leaving for the 
next paper the matter of 
standardizing the actual 
work connected with 
turning out production. 

The whole aim jn 
standardizing conditions 
is to arrange means to 
eliminate duplication of 
effort — to make things 
easier — to kill off waste 
— to facilitate, in every 
possible way. What 
someone else is doing in 
some other plant is not 
our starting point, so the 
question is not — "what 
can we use from the out- 
side V It is rather ' Svhat 
do our conditions reveal 
in the way of waste .'^'^ 

Find out, devise such 
betterments as you pos- 
sibly can, and then before installing, draw on every outside source avail- 
able. Start from the inside and work out, and not from the outside and work in. 

For the purpose of clearly outlining the method to follow in under- 
taking the task of standardizing conditions, a number of examples 
will be used as follows: 




Fig. 41. Mirror as Aid to Milling Job 



Track Arrangement 

Take Figure 42, for example. Here we have a lay-out of tracks in a 
large factory yard. Naturally, to one possessing an analytical mind, 



156 



INTRODUCING EFFICIENCY PRINCIPLES 



In 1 J k 1 — -\ 




Fig. 42, on the left, is an Unsystematic Lay-out of Factory Trackage. Fig. 43, on the 
right, is a Standardized Rearrangement of the Same Yards 

a walk around this yard would mean something. To one who never saw 
this yard the lay-out shows that the arrangement must necessitate 
much switching. It may be concluded also that maintenance of track 
must be high. Study would therefore be put upon devising plans 
for simplifying the arrangement, and Figure 43 shows a possible result 
from these efforts. We find here large capacity in handling cars, in- 
creased storage space, less switching, and decreased maintenance cost. 



STANDARDIZING THE WORKING CONDITIONS 



157 



Width 



4V2 



Thickness 12' 



Grinding Gauge 
On certain grinding operations study revealed that workmen were 
unable to grind the parts uniformly, and even after measuring there 
would be differences. To overcome this a gauge, Fig. 44, was made 
of tool steel, so that the operator 
by fitting the part into the open- 
ings would know when he had 
properly ground them to size. 
This means not only a saving in 
time but better and more uni- 
form parts. 

Piling Material 
In a department of a plant ^^^' ^4. Grinding Gauge 

making standard parts' it was found extremely difficult to handle the 
parts in such a manner as to admit of accurate counting and at the 
same time facilitate handling. The following sketch shows the part: 

The solution was found by making a number 

of boards, laying one on the floor and piling 24 

parts on thus: 

A board would 



5H 



Jl 



Tk« Engineering Magazine 



The Engineering Magazine 

Fig. 45 



- 



The Engineering Magazine 



then be placed on top of the 24 pieces, 
another set of 24 placed on the second 
board, and so on. In handling, a board 
was picked up and carried. Count was 
made by the number of boards, and not 
pieces, as each board always meant 24 
pieces. 

Twisting Wire 

In a plant twisting wire the require- 
ments were for lengths of at least 200 
feet. In twisting, short ends would be 
left, which either had to be thrown out or a new spool put in the machine 
and a splice made. The time studies revealed considerable waste in 
time and in material and as a result the foreman devised an ingenious 
scheme which was a combination of both planning and standardized 
conditions. He had the boys spooling the wire run it through measur- 
ing machines, marking on the tag of the last run of wire the lengths of 
the various runs in their order, as 550 feet, 400 feet, 700 feet, 300 
feet. Instead of the machine operator putting in spools at random. 



Fig. 46. Standardized Method 
of Piling Stock 



158 INTRODUCING EFFICIENCY PRINCIPLES 

he was given a number of spools from which he could select the 
lengths which would leave long ends. For instance, if he was twist- 
ing two wires about a third and he had four spools with the following 

lengths of wire: 

12 3 4 

Feet Feet Feet Feet 

A 700 800 1,000 400 

B 300 400 400 600 

C 800 600 600 600 

he would take 1 and 3, run lA and 3A and have a balance of 300 feet, 
which he would run with IB. Then he would run IC with 3B with a 
balance of 400 feet, which he would run with 3C, leaving 200 feet of 
wire. Now taking spool 2 he would run this 200 feet with 2A and 
have 600 feet left. Putting in spool 4, he would run this 600 feet 
with 4 A, with a balance of 200 feet which he would run with 4B, leaving 
400 feet. This he would run with 2C, leaving nothing. 2C and 4C are 
both 600-foot lengths. . 

' Fitting and Riveting 
In a structural shop it was found through time-study methods that 
a fitting gang could fit twelve units in a day. Hence the riveting 
gang was correspondingly limited to twelve units per day, because it 
was able to rivet only what was furnished to it. The stop watch indi- 
cated, however, that the gang could easily rivet twenty pieces per day. 
Because it only produced twelve, therefore, its efficiency was 60 per 
cent (12 -^ 20). The work consisted of riveting plates on I beams 
and required the riveting by hand of thirty-six %-inch countersunk 
rivets per unit. The matter was carefully discussed with the foreman, 
who instructed the riveting gang to work on other jobs until about 10.30 
a. m. and then to start in on the work illustrated. He also had an ex- 
cellent opportunity to ascertain what standardizing a condition meant, 
for the engineer suggested a plan for placing the work to facilitate the 
labor of the gang driving the rivets. Fig. 47 shows the arrangement. 



Start 

Q Eiveter 
Put in Man O >- 


^ >■ 


>- >- 


^ ^ 


-^ I I I I 

. Q. Buck up Man 

-^ — 


-^ -^ — 

^5>- 


-< 

— ^ 5^ 


-< — 
^ — . 


-< 


-< 





The Engineering Magazine 

Fig. 47. Standardized Conditions on a Riveting Job 



STANDARDIZING THE WORKING CONDITIONS 



159 





^^ 




1 


•■^^ ?'^; ■ 'i*'->w'^^^|^^ 









Fig. 48. 



" Cricket " for Machinery- 
Erector 



The riveter started at the first 
unit and followed the arrow. A 
reaming gang followed the rivet- 
ing gang, taking out fitting bolts 
and reaming holes. The riveting 
gang in turn following the ream- 
ing gang, and riveting reamed 
holes. New units were placed as 
soon as work was riveted. 

Assembly Work 

Figs. 48 and 49 both show 
equipment which materially helps 
assembly men. The small stool 
(Fig. 48) on which the operator 
sits is called a "cricket," and 
having castors it enables the 
workman to move himself around by pushing away from it with his 
legs. As can be appreciated this facilitates the work of a man who in 
erecting machinery would otherwise have to sit or lie on the floor. 
The portable bench holding tools (Fig. 49) is for men who have to 
work at several places around a machine. 

Belt Rack 

Fig. 50 shows the method followed in standardizing the conditions 

of a grinding and polishing room. Previously the belts had been kept 

at the rear of the room, making it necessary for the workmen to leave 

their work, go to the place where the belts were kept, take what they 

wanted, return, place the belt on 
the machine, and start. After the 
studies were made the belt racks 
were moved, as shown in the pic- 
ture, and a number of belts were 
placed on hooks for each machine, 
sufficient to last for the day. If a 
man needed additional belts, he 
had to take up the matter with 
the belt man, who would inves- 
tigate and decide whether or not 
to allow extra belts to be used. 




Fig. 49. Portable Tool Bench 



160 



INTRODUCING EFFICIENCY PRINCIPLES 



Packing Boxes 

In a factory which packed the pieces in small boxes by hand, the 
operators were found lining the boxes with paper before sorting in 
the pieces. After time studies were made, it was suggested that one 
operator be delegated to place papers in empty boxes, prior to giving 
them to the packers. This was done, and the time previously spent 
on this part of the work was devoted to putting in pieces, with con- 
siderable gain in time 
per box. 

Placing Papers 
In one case where girls 
were placing papers in 
machines, it was found 
that very often the papers 
were wrong-side-up and 
wrong-end-to, necessitat- 
ing the turning of the 
paper around and over. 
The plan that was rec- 
ommended was to place 
the papers properly before 
they were sent to the 
machines, with right-side 
up and right end facing 
the girl. In this way the 
girls could place papers 
with the fewest motions 
and in the least time. 

Emery- Wheel Practice 

In a plant operating 

Fig. 50. Belt Rack p . 1. 1 • 

** "^ lorty emery wheels m one 

department, investigation developed that on thirty -four out of the forty 
wheels there was a loss in surface speed of 46,166 feet per minute. Pro- 
gressions were figured out so that as wheels became smaller through use 
they would be moved to another stand, this to be done out of working 
hours. The speeds were figured so that approximately 5,000 feet of 
surface speed per minute would be attained. To determine the changes 
in wheels a gauge was designed. By placing the gauge on any wheel, 
the diameter would indicate the spindle speed at which the wheel 




STANDARDIZING THE WORKING CONDITIONS 



161 



i 



should run, and the stand on which it should be placed. Changes 
would be made accordingly. These rules were outlined: 

1. Sound each wheel before mounting to detect injury in transit. 

2. Never force wheels onto spindles. 

3. Use relieved flanges wherever possible. 

4. Avoid unnecessary tightening of wheels. 

5. Keep rests close to wheels. 

6. See that each wheel is properly guarded. 

7. Keep each wheel running true. 

8. Look after adjustment of bearings once each week. 

9. Keep bearings well oiled at all times. 

10. Have stands on solid foundation. 

11. Look each wheel over twice each week to detect cracks. 

12. Delegate a responsible person to look after the above who is to make regular 
reports on same. 

Machine Record 

In the seventh chapter mention was made of getting or making 

a set of floor plans show- 
ing machines, floors, 
benches and vises. This 
is a valuable aid to the 
engineer contemplating 
the task of standardizing 
conditions and operations. 
In connection with these 
floor plans, the engineer 
should secure the data 
that will give him a com- 
plete inventory of the 
tools, showing what the 
equipment is, where it is, 
what it does, the condi- 
tions under which opera- 
tion is carried on, etc., all 
of which is of value. Such 
a machine record is shown 
in Fig. 51. 

Anticipative Inspection 
The conditions under 
which machines are op- 
erated are important. 





MACHINE TOOL RECORD 


HATE 


MACHINE NO. acPT eu>a. noon 


NAMC OF lUCHme HAKE OF TOOL 


WEIGHT-MCAW-HblCDfUW-UOMT OATE INSTALLED 


UNESMAFT SIZE 0. OF PULLTT FACE R. P. M. 


COUNTERSHAFT SIZE 0. OF PULLEY FACE B. P. H. 




1 1 2 


3 


4 


r.ct 


















DRIYINC CONES tlZC 












SPIHOiX SPEED 
STROKES PER HINUTC 


ORIVtN COMES 

a. P. H. 






















L£NCTM OF STROKE 
RETURN RATIO 

( KAN 

grinding tools 1 

(toolroom 


DRIVING F. CONES BtZ£ 










- 


ORIVCN F. CONES 

m. p. M. 






















eOOUNG AGENT 


FEED CHANGE GCAR TRAIN 



















DRIVING BELT 


S - O- T 


MATERUIL 


BELT POSITION 


PIECES UACHINEO AT A TIME 


CUTTER 


s>» 


mo-ncTM 


»T«.. 


•««B 


TCCTW 










IMSCRTCO 
ftOLIO 


NO- CUTTING TOOLS 


TOOIS GMOUND EVtBT PiCCC* 


tr tATMC Toot - sat 


or STOCK 




TOOLS GKMiND EVtItT M»». 


KiMO or STTCL 


fS WORK lUTTLCO— FiCRIXO^SANO BLASTTO 


SMAPt or TOOL 


•ouuc 


MOVNO 


WORK MACHINED 
NAMC 
^AT MO. 


Currmo S»tto-rr. 9xm mm. 


rcCD -'WOHCB PCR «■ 


m. 




otrrw or Cut 


■AOOmOMU. OAT* : 


W.DTH or CUT 


MCTAL RCMOVtO 

Ptn u^uTt 










— ^-LIH"-^:^ 







Fig. 51. Machine-Tool Record, Face and Back 



162 INTRODUCING EFFICIENCY PRINCIPLES 

Efficiency as to operations is largely dependent upon the efficiency 
of the working conditions, for which reason they should receive careful 
attention. In standardization of conditions, the aim is to 

1. Minimize delays and breakdowns. 

2. Keep maintenance costs at a minimum. 

3. Secure greatest capacity out of equipment. 

It is one thing to take care of trouble when it occurs and another 
to anticipate it by days and sometimes weeks. This branch of the 
work should be organized along the following lines: 

1. Each piece of equipment should be considered as a unit. 

2. As to each unit, the factors likely to cause trouble should be determined. 

3. Each unit should have a record card on which is recorded its complete history. 

4. For the various factors determined upon as requiring attention, limits as to 
time should be set for inspection purposes. 

5. Men should be delegated to look after this "anticipative inspection." 

6. These inspectors should be supplied with inspection reports, upon which to 
record their findings. These reports should be made out from the record cards cov- 
ering the particular factors to be looked into, and sent to the inspectors. This would 
constitute an advance planning of this class of work. 

7. The inspectors should take the inspection reports, make the inspections 
called for, note the conditions, advise as to the troubles developing, and state what 
should be done and when. 

8. These reports should then be taken and the information contained thereon 
entered on the record cards. 

9. Repairs to the units as made should also be entered on the record cards show- 
ing date and nature of the work done. 

10. Because the time limits at the start will be more or less arbitrarily deter- 
mined, it will be found as the work progresses that many of them would need adjust- 
ment. For instance, a factor may have a time limit of eight days, when every five 
days would be found to be the best limit. Another might have one of four days and 
every two weeks be found to be sufficient. Adjustment of limits is simply a matter 
of analyzing the information shown on record cards. 

11. Delays should be recorded, investigated, and entries made on record cards, 
so as to make the information as comprehensive as possible. 

12. Cost of repairs should also be entered on record cards. 

The forms copied in Figs. 52, 53 and 54 will show the kind of rec- 
ords that can be applied to motors, one for inventory, another for 
the record, and the third for the inspection report. 

High-Speed Steel 

The advice to cover this feature can be quickly given. Ascertain 

the current practice in the shop, as to kind of steels used; forging, 

tempering and grinding; shapes and sizes of tools; cooling agents; 

cutting speeds, feeds and cuts; how often tools are ground, etc. Then 



STANDARDIZING THE WORKING CONDITIONS 



163 



MOTOR IINVEINTORY. 


MOTOR TT« 1 NATKD •PUO RATCO H. Pk 


ITEM 


OATC OP CKAROK 1 














Location 














Kind of work 














Armatme 














Rheostat 














Pulley 














Cbaoge In deai^n 




























IT EM 




1 














Locatioo 














Kind of work 














.Armature 














Rheostat 














Pulley 














Change In design 














.., .oo..... 















secure the best books and articles on this subject. Match the current 

practice with the practice recommended by these speciahsts. Begin 

the work of testing and 

experimenting to see what 

the tools and machines 

will accomplish, and the 

result will be a standard 

practice that will mean 

greater production. 

Belting 

A foreman recently 
asked me what I would 
do after a belt had been 
properly placed and the 
foreman of the depart- 
ment turned the belt with 
the hooks to the face of 
the pulley. I replied that 
the work should be care- 
fully studied and standard 
practice drawn up and 
placed in the hands of an 
expert, or one who could 
be trained to handle the 
details. To talk about 
standard belting-practice 
is at first the occasion 
for a laugh and a protest 
from shop men, against 
red-tape and damn-fool- 
ishness. They are to be 
excused, however, because 
they do not know just 
what the most efficient 
belting-practice means. 

It is a fact that in the 



7S^ 


rvuxi 


ORIVC 


CLOSEO-OPCN 


lUTCD «PSKO 


hatcd h. p. 


'MOTOR 1"* 
RECOR^ 1 


WSKCTEO 


lOUTKia 


nuia 


Ufoa 


ma 


REMARKS 


V KMOS 


U|M 


H»^ 




M i 
























' 


































































































































































































































































"•■•• 


■•'" 



















MOTOR INSPECTION 191 


■OTOB 


UKATn 


mn 


UPEBQ 


SP£ES 


TROUBLr 




U|M 


Bar, 




































































































































































































































...... 















Figs. 52, 53, 54. Motor Inventory, Record, 
and Inspection 



average shop very few belts wear out through legitimate wear; 
they are ruined through accident and' improper attention, usually 
the latter. A narrow belt properly maintained and the tension 



164 INTRODUCING EFFICIENCY PRINCIPLES 

maintained at the right point, will transmit more power than a 
wide belt in poor condition and running as slack as they are 
usually allowed to run in the average shop. If the belt is too tight 
it means waste due to friction. If too loose it means loss due to slip. 
As an entire paper could be written on belt-practice, it will be im- 
possible to do more than outline briefly a few fundamentals: 

1. Do not run double belts on pulleys less than 6-inch and triple belts on pulleys 
less than 20-inch. 

2. A pulley should be 25 per cent wider than the width of the belt. 

3. Never let belts touch shifting devices or lap steps of cone pulleys. 

4. Belts should run with hair side facing the pulley. 

5. Outside point of splice should trail when running, to avoid opening by the 
action of the air. 

6. Belts should sag onto pulleys and not away from them. 

7. Run up-and-down belts on a slant. 

8. Avoid very short drives. 

9. Keep pulleys clean. 

10. Clean belts at regular intervals and apply a dressing that will give the grain 
side a soft and adherent surface. 

Maintain a belt record in the manner outlined under *'anticipative 
inspection"; inspect the belts periodically so as to anticipate break- 
downs; keep the belts clean and pliable; repair them out of working 
hours — and the result will be less cost of belt maintenance and longer 
and more efficient operation of machines. 

Foundry Conditions 
The matter of standardizing the conditions in the foundry may 
be of interest in connection with this general treatment. The idea is 
to point out the way rather than guide over the road. The following 
is therefore a suggested outline rather than a specific set of rules to 
cover all cases: 

1. Bring in the small patterns on the afternoon previous to day work is to be 
made, placing them in racks provided for the purpose. 

2. Large patterns should be brought in towards night and arranged in a con- 
venient place. 

3. After planning each day, the core-room foreman should have the important 
core boxes brought in. 

4. Flasks should be looked up, and those necessary for the next day's work 
brought in. 

5. Get and bring into foundry such riggings as may be necessary. 

6. Special gaggers and rods, special mixes of sand, brick, etc., should all be 
made ready in advance. 

7. The night gang should remove castings from floors to cleaning room. Gaggers 



STANDARDIZING THE WORKING CONDITIONS 165 

should be taken from the sand and placed on the back of the moulders' floors. Sand 
should be tempered. Flasks not needed should be taken from floors. Necessary 
pits should be dug. 

8. After the regular night work is done, the night force should place on the 
moulders' floors the various large flasks that are to be used, in which should be placed 
the patterns called for. If pits are to be used, patterns should be placed near them. 

9. About one-half hour before starting time in the morning, the laboring force, 
or part of it, should report, and distribute the smaller patterns and flasks. 

10. As soon as work has started in the morning, whatever may be necessary in 
the way of rigging should be taken to the floors. 

11. There should be a regular place for all supplies and a knowledge of their 
location in the possession of all. 

12. Facing, which should be mixed in advance, should be kept at each moulder's 
floor and replenished before the men need more. 

13. Labor foreman should carefully watch the needs of the men as to copes. 
There is no excuse for a moulder asking for his cope, only to find it at the bottom 
of the pile. 

14. Moulders should be kept supplied with tools, and report their needs to the 
labor foreman. 

15. Cores should be supplied the men in advance of requirements. They should 
never be made to go for them. 

Standardizing Machine Conditions 

In standardizing the conditions of one class of machines, the fol- 
lowing rules were adopted, which will indicate quite clearly the plan 
to follow: 

1. No machine is to start work until cone belts have been placed in positions 
decided upon. 

2. No machine is to start work until proper change gears have been put in place. 
2. Belt guides will be found in front of rear cones. 

4. Gear boards have been placed on machines. 

5. Change gears have been standardized as follows: 

A — 22/26 teeth for slow speed 
B— 21/27) ,, .. ,. , 

C-20/28 \ ^"^^^^ ^P""^ 

^^/i-^^. D— 19/19 " " fast 

E— 18/30 " " very fast speed 

6. Do not use any 24/24 gears. 

7. If board spaces 2, 3 and 4 have their gears on it means that the 22/26 gears 
are in the machine. 

8. The 22/26 gears are to be used only for work. 

9. If 22/26 space is empty and also one of the 2, 3 and 4 spaces, the gears in the 
machine are the ones corresponding to the empty 2, 3 or 4 space. 

10. Maintain speed of the machine at the point at which operators can feed 
pieces with minimum loss of space between pieces. 



h 



166 INTRODUCING EFFICIENCY PRINCIPLES 

11. To increase speed of machines, without changing relation between pieces, 
operate cone belts. 

12. To change relation between pieces, change gears as determined. 

13. Use following change gears: 

Work Gears 

A 22/26 

B 21/27 

C 20/28 

D 19/29 

E 18/30 

14. Changes are to be made before machines make a new run. 

15. One person is to be delegated to attend to belt and gear changes and to be 
held responsible for this part of the work. 

Quality Inspection 

The matter of inspecting work is not so much a matter of looking 
at the piece of work, studying the drawing, putting a "mike" or gauge 
on the piece, and passing it or throwing it out, as it is of first creating 
certain definite standards against which the finished production can 
be compared. The following will indicate what is meant: 

1. Standard grades of finish, with allowable tolerance dimensions, must be in- 
dicated on all detail drawings. 

2. Finishes will be of six different kinds. 

3. Finish A consists in making the surface accurate and smooth, and in keeping 
the dimensions that locate the surface to within a plus or minus tolerance of .001 of 
an inch. This finish is to be used on the best class of machine work, such as pins 
and journals of crank-shaft bearings, etc. 

4. Finish B consists in making the surface accurate and smooth, and in keeping 
the dimensions that locate the surface to within a plus or minus tolerance of .003 of 
an inch. 

5. Finish C consists in making the surface fairly accurate and smooth, and in 
keeping the dimensions that locate the surface to within a plus or minus tolerance 
of .005 of an inch. This finish is to be used on ordinary machine work, such as line 
shafting, where a good appearance or a wiping surface is desired. 

6. Finish D consists of making rough machining or filing to within a plus or 
minus tolerance of .025 of an inch. This finish is to be used on rough bored and 
turned forgings or on surfaces where a simple filed finish is desired. 

7. Finish E is for forge finish on rough forgings where no machining is required. 
Work should be forged neatly to size. 

8. Finish F or cast finish. Casting is to be cleaned of all sand and scale. All 
risers, gates and fins are to be cut off flush with and conforming to the surface of the 
casting. The metal of the casting is to be so distributed that when casting is com- 
pleted and ready for assembly, no thickness of metal shall exceed that shown by 
drawing, plus or minus 5 per cent of that thickness. No dimensions from locating 
points or planes to cast surfaces to differ from the dimensions as given on drawing 



STANDARDIZING THE WORKING CONDITIONS 167 

by greater amounts than the following tolerances (outside dimensions to have plus 
tolerance and inside dimensions the minus tolerance) : 

Casting weighing 2,000 pounds and over ± . 25 inch 

500 " to 2,000 pounds + 0. 15 " 

100 " to 500 " ± 0. 10 " 

less than 100 pounds ± . 03 

9. In addition to the above, when the surface of the metal is to be specially 
treated, such as polishing, buffing, browning, blueing, tinning, plating, painting, 
grinding, hardening, etc., the treatment is to be indicated in connection with the 
grade of machine finish. 

10. The pattern and forge shop are expected to make sufficient allowances on 
pattern or rough forging, as the case may be, to insure the grade of finish required. 

The various illustrations show what standardizing is, how it is done 
and it is hoped that the reader, if he did not before, will now see why 
it is done. No attempt has been made to go through a plant in logical 
order. This would be impossible in the short space of a single article. 
When books can be written about belting, the art of cutting metal, 
mill-wrighting, inspection methods, and the like, it is clearly out of 
the question to do more than to outline what can serve as a basis 
for saying "go thou and do likewise." 

Standardization of working conditions is of the utmost impor- 
tance, as a careful study of the various cases will clearly show. The 
work is intensely practical and means facilitation. Operations cannot 
be performed to advantage or efficiently if conditions have not first 
been properly adjusted. 

In a general way the procedure is simple. There must first be a 
conception of the elements to be standardized. Then through time 
study or careful investigation, current practice must be ascertained. 
Following this there comes the task of developing a basic theory on 
which to begin work. Then from all the available sources — books, 
articles, discussions with practical men both in and out of the or- 
ganization — there should be selected the points which have a bearing 
on the case in question. This should all be boiled down to make a 
systematic presentation of facts fro and con. Tests and experiments 
should then be made in an effort to ascertain what to do and how to do 
it. Procedure should be outlined and properly written up. Following 
this the work should be functionalized, and a responsible head selected 
who should render reliable and prompt reports covering his activities. 
The plans decided upon can then be carried out efficiently. 



Chapter XVI 
STANDARDIZING THE OPERATIONS 

IN the coal mine they use a car which on the "man trips" will 
seat four persons, two sitting on a side, the four filling the car. 
If the men put their legs between the legs of the other men, each 
man sitting on the foot of the man opposite him, eight men can sit in 
the car without discomfort and I have seen nine men in a car. This is 
standardizing an operation. 

In the outline of time-study factors shown in Chapter XI, there 
are three of the twelve which we will have to make considerable use 
of in standardizing operations, as listed below: 

9. From the data compiled, standardize the operation as to sequence of ele- 
ments and prescribe as far as possible the procedure as to the motions. 

10. Set opposite each element or set of motions an allowed time which will con- 
sider rest, fatigue, and unavoidable delays. 

11. Analyze the facts concerning waste and efficiency and outline constructive 
measures to correct the faults. 

To proceed to the actual work of standardizing let us take as an 
example study No. 1 of the paper referred to. We will assume that a 
number of studies have been made of this particular work in order to 
establish differences as to time (which is most essential in determining 
a fair standard) and that the data have been written up in permanent 
form as illustrated and turned over to the standards division of the 
staff. The supervisor of this division is therefore familiar in a gen- 
eral way with the details. 

In considering the facts before him showing necessary operations, 
delays, and comments, he will arrange the work into the following 
divisions and their natural complemental subdivisions: 

Handling material. 



1. The manual features 



Setting jigs. 

Putting work in machine. 

Securing work. 

Hand feeding. 

Tearing down machine. 



168 



STANDARDIZING THE OPERATIONS 169 



2. The mechanical features , 



Location of machine. 
Belting. 

Speeds and feeds. 

Jigs and fixtures. 

^ Tools and holders. 

After due thought he should discuss the matter with the study 
supervisor and if any recommendations for betterment are forthcoming 
they should be made known to the chief of staff, who will present them 
to the proper committee (see Chapter IX). If improvements are to 
be made, standardization should be delayed until they have been 
put into effect and new studies made. The conditions are now changed 
and studies which reflect the latest practice are necessary in order 
to standardize with reference to these conditions. 

The standards supervisor should take up with department and 
tool-room foremen, or others about the plant, the various points with 
reference to the work in question, soliciting their co-operation and 
getting their ideas. This can be done by seeing each one separately 
or in conference. In other words, the line is one hand, the staff the 
other. Their working must be in absolute harmony. No one-handed 
man ever accomplishes all that is possible. 

With the new as well as the old studies before him, he should call 
the speed and feed supervisor into conference, for the purpose of de- 
termining the proper speed, feed, and cut to use, as well as the time 
necessary as determined by the combinations decided upon. The 
manual features should then be noted and a reasonable time allowed 
for each step. Procedure should be clearly defined. For instance, 
if the tools and jigs are wanted in a certain order, standardization 
would provide for bringing them in exactly in the order wanted. If 
three or four different kinds of castings were to be worked upon, re- 
quiring changes in the machines, the standardization would see to it 
that they were brought in so that the workman could finish all of 
one lot before starting work on the next lot. If drills and sockets are 
to be sent in, the standardization would arrange to have them de- 
livered with drills in the sockets. If a jig is to be used and the work 
admits, standardization would provide two jigs so that the man could 
be inserting a piece in one jig while the other piece was being worked 
upon. If a difference is found in the sizes of tools used, standardization 
would determine correct sizes and record them, preferably on a sketch 
showing standard sizes. 

From all the data in the hands of the standards supervisor, a tenta- 



170 INTRODUCING EFFICIENCY PRINCIPLES 

tive schedule is drawn up and presented to the chief- of- staff. If he 
rejects it, he turns it over to the study division for more facts or to 
the standards division for review. If accepted, however, it is pre- 
sented to the "operations committee" for approval, or a separate 
committee known as the "schedule conajnittee" can be formed, made 
up of superintendent, department foreman, tool-room foreman, study 
supervisor, standards supervisor, and chief- of- staff. If the tentative 
schedule is approved, it is written up in final form as will be outlined. 

Calling a staff meeting, the chief- of- staff outlines the nature of 
the standardization, what particular weaknesses were found, what 
must be watched, and the duty of each one in connection. In other 
words, the operations are to have the best of staff advice until the 
planning, conditions, and the operations are all they should be. The 
standards supervisor, through the foreman, or directly if it is possible, 
should then discuss the work that has been standardized with the 
workmen regarding their part of it. 

Getting back to time study No. 1 once more, the work of the staff 
after standardization would be to determine to what extent the plan- 
ning as outlined in the seventh and eighth chapters will eliminate the 
delays due to planning. Having a "next job" will do away with delay 
A. The betterment of the tool-room practice and having the planning 
take care of delivering tools to men will cancel delays B and F. Re- 
ducing the operation to writing will take care of delay E. The staff 
will see to it that the tools are being ground and shaped as per the 
standardization of tool equipment decided upon; that belts are prop- 
erly looked after so that there will be no serious delays from this source; 
that " anticipative inspection" (outlined in the previous chapter) is 
taking care of such delays as failure of the pneumatic hoist to work 
properly. As can be seen, the work of the staff, working in conjunction 
with the line, is three-fold in nature: 

1. The work is carefully studied and analyzed. 

2. Betterment and standardization are arranged for. 

3. Supervision is exercised to enable the plant to attain the standards deter- 
mined upon. 

Take time study No. 2 for another illustration. In this the delays were : 

Minutes Per cent 

Due to planning 31 . 7 61 . 

Due to conditions 17.2 33 . 1 

Due to man 3.0 5.9 

Total 51.9 100.0 

With several readings of each step as a basis (and because the 



STANDARDIZING THE OPERATIONS 171 

planning provides for getting ready in advance the things that are 
needed), with the staff in conjunction with the foreman keeping the 
men supphed with facihties and tools, the standards supervisor stand- 
ardizes the operation, presents it to his committee for approval, calls 
a meeting of the staff for discussion, outlines the requirements to the 
moulder, and puts the schedule into effect. 

In other words, the procedure to follow in standardizing an opera- 
tion is: 

1. Analyze time-study data. 

2. Confer with both line and staff as to features. 

3. Present recommendations for betterment to proper committee. 

4. Prescribe practice as to speeds and feeds, belts, inspection and the like. 

5. Standardize operation as to sequence of work, motions and time. 

6. Write it up in a tentative manner. 

7. Present it to the proper committee for approval. 

8. Outline standardization to the staff. 

9. Acquaint men with their part of it. 
10. Put schedule into effect. 

In the paper referred to on time study, a turret-lathe study was 
shown. The factors were: 

1. Putting piece in. 

2. First roughing cut. 

3. Changing tool. 

4. Second roughing cut. 

5. Changing tool. 

6. Square end. 

7. Removing piece. 

This takes care of the sequence of elements. Can the motions be 
bettered? Assume that the parts are placed to the left of the man; 
that he puts the parts into the machine with his right hand; that 
parts are placed on the floor and that he stands at his machine putting 
the pieces into the jig on a line with his waist. What takes place is this : 

1. Turn to left. 

2. Bend over. 

3. Reach for piece. 

4. Pick up piece. 

5. Straighten up. 

6. Turn to right. 

7. Move arm to machine. 

8. Insert piece. 

If consideration is given to the above it will show that the plan 
IS wasteful. We can therefore standardize this part of it. The parts 
should be placed on the right of the man, as it is just as easy to do 



172 



INTRODUCING EFFICIENCY PRINCIPLES 



this as to place them on the left hand. A bench should be provided 
so parts can be placed upon it. Then the steps would be: 

1. Reach for part. 

2. Pick up part. 

3. Move arm to machine. 

4. Insert piece. 

Four motions have thus been eliminated. 

A further refinement may be in order. In placing the parts we will 
say that the trucker dumps them on the floor or bench. Naturally 
the pile is a mixed, twisted, and confused mass. Consideration will 
show that if the parts, as they are placed, are piled in an orderly man- 
ner, the man can work to better advantage in picking them up, for 
they can be placed with reference to the manner in which the worker 
will reach for them. 

Piling parts in a confused way or giving a workman mixed lots is 
oftentimes very ineflicient. It is safe to say that in every case of the 
kind study and standardization would result in betterment. The 
chart shown illustrates this point. Study was made of an average 
lot as shown by the straight line. Two different lots of the same kind 
of work were then studied, each lot being worked upon separately by 
the operator, the work being more complicated than the average, 

PIECES 
20 25 




The Engineering Magazine 

Fig- 55' Chart Showing Effect of Standardizing the Operation of Snagging 



STANDARDIZING THE OPERATIONS 173 

SO as to not result in misleading conclusions. Note the consistent re- 
duction in time per piece shown by lines 1 and 2 on the chart. 

We are now ready to consider the matter of time. We know what 
must be done and how it must be done. The question is "in what 
time.f^" Reference to the turret-lathe study in question will show: 

Average time Best time 

Operation minutes minutes 

1. Putting piece in . 152 . 130 

2. First roughing cut 318 . 280 

3. Changing tool .054 .040 

4. Second roughing cut . 198 . 160 

5. Changing tool .054 .040 

6. Square end 250 .190 

7. Removing piece . . 125 . 090 

Total 1.151 930 

If we allow the average time as the standard, the task would be 

60 minutes 

•— : =52.1 pieces per hour. 

1.151 mmutes 

whereas on the basis of the best time shown the task would be 

60 minutes 

-. = 64.5 pieces per hour. 

.93 mmutes 

A little consideration will show that it would be unfair to the 

man to ask him to perform a task in the best time shown, and that it 

would be equally unfair to the company to ask a man to perform 

a task in the average time. After considerable testing and study the 

writer has arrived at the following conclusions: 

1, Where there are no pronounced variations in the readings, a 

fair standard may he determined by adding one-half the difference 

between best and average times to the best time. 

. £. Where there are pronounced variations in the readings, drop 

readings above the average and using the balance, add one-half the 

difference between best and average times to the best time. 

In the study referred to there were no pronounced variations so 

our standardization as to the time factor (in minutes) is as follows: 

Operation 1 5 ( . 152 + . 130) = . 141 

2 5 (.318 + .280) = .299 

3 .050 

4 5 (.198+ .160) = .179 

5 .050 

6 5 (.250 + .190) = .220 

"• .7 5 (.125 + .090) = .107 

Total 1.046 



174 INTRODUCING EFFICIENCY PRINCIPLES 

60 minutes 

Standard = 57.3 pieces per hour. 

1.046 minutes 

The efficiency of the operator is approximately 96 per cent. 
To ilhistrate the method in cases where the variations are notice- 
able, the following study is offered: 

In and Glue Cover and 

out trim 

All times in minutes 
.09 .15 .35 .35 
.12 .17 .30 .30 
.13 .16 .32 .32 
.105 .175 .37 .37 
.13 .17 .45 
.135 .15 .37 .37 
.16 .18 .45 
.13 .15 .43 
.12 .20 .41 
.15 ,41 
^ 

.124 .165 .38 .34 

.090 .150 .30 .30 

The standard from the above would be determined as follows: 

minutes 

In and out 5 (.124 + .09 = .107 

Glue 5 (.165 + .15) = .157 

Cover and trim 5 (.340 + .30) = .320 

Total 584 

60 minutes 

Standard : — = 102.7 pieces per hour. 

.584 minutes 

Covering the work in question it was decided to allow 10 per cent 

rest so the standard would be found by the following rule: 

60 minutes X 90 per cent . . 

: = 92.3 pieces per hour. 

.584 minutes 

The standard based on judgment and experience before the rule 
shown was developed was 93 pieces per hour. 

Dropping the readings above the average, where there are varia- 
tions in time that are noticeable, may at first glance seem unfair to 
the men. It should be remembered, however, that very good reasons 
usually exist for these high readings. Further, it should be remembered 
that it is the intention to provide for rest and in addition to allow the man 
for delays beyond his control. 



a 



STANDARDIZING THE OPERATIONS 175 

From the riveting study on pages 97 and 98 of the chapter on 
Time Study" we can work up the following standardization: 

Rivets Time Rivets Minutes per 

per hour 100 rivets 

5 7 43 139 

10 12 50 120 

10 6 100 60 60 

5 4 75 90 

5 3.5 86 70 70 

10 11 54 111 

10 7 86 70 70 

10 7.2 83 72 72 

5 3.5 86 70 70 

10 8 75 90 

10 6.5 92 65 65 

10 ' 6.7 89 67 67 

10 7.1 84 71 71 

5 4 75 90 

10 6.1 98 61 61 

10 6.7 89 67 67 

Total 135 106.3 

The figures in the tabulation give the following factors: 

Average 73 82 

Best 100 60 

Standard 

(60 minutes -^ 71) 84 .71 

Average 89 67 

Best .100 60 

Standard 

(60 minutes -^ 63.5) ... 94 63 .5 

To anyone who has watched a hand-riveting gang all day, it is 
obvious that it should be allowed some rest as the work is intensely 
fatiguing, keeping the arm muscles rigid the greater part of the time, 
in addition to -putting a severe strain on the back and shoulder muscles. 
Further, the rapid vibration of the riveting gun is a greater factor in 
setting up fatigue poisoning than anyone has any idea of. If therefore 
we assume a rest factor of 15 per cent, and on account of the wide 
variation in the column *' minutes per 100 rivets" (the high readings 
being due largely to exhaustion), drop the readings above the average 
and use 63.5 minutes per 100 rivets as a standard, the task would be: 

60 minutes X 85 per cent . 

: = 80 rivets per hour. 

63.5 mmutes 

In order to get the gang to accomplish this, it is necessary not only 



176 



INTRODUCING EFFICIENCY PRINCIPLES 



to see that sufficient work is supplied in advance, but that plenty of 
rivets are at all times at hand. This is planning. Reaming should 
be done by a separate gang following up the riveting gang, and the 
rivet boy should be instructed as to the kind of rivets to throw so as 
to eliminate the possibility of the riveter getting rivets too cold to 

head up. This is standardizing 
conditions. The gang must work 
together, and the riveter, buck- 
up man, put-in man, and the rivet 
boy must be taught to work as a 
unit. They must be given some in- 
centive. Here again we have an 
example of planning, conditions, 
operations, and bonus. In con- 
nection read the fitting and rivet- 
ing illustration in the previous 
chapter. The two go together. 

You have read about Mr. 
Taylor's experiments in allowing 
rest to pig-iron workers. You 
have heard about the allowance 
of 10 minutes rest in each Ij^ 
hour to girls inspecting bicycle 
balls, which in connection with 

Fig. 56. Rest Clock for Periods of other betterments resulted in 36 
2 Minutes m Every 12 • i 1 • .i i i • i 

girls doing the same work wnicn 

had previously required 120 girls. I know of another case where the 

production was increased from 275 pieces to 550 pieces per day, 

through standardization and allowing 20 per cent rest to the operator. 

In the time-study paper referred to I showed how the efficiency 

of an operator was increased from 69 per cent to 100 per cent by 

allowing 2 minutes out of 12 as rest. 

Prescribing a rest of 5, 10 or 25 per cent is one thing. It may be 

quite another to get the worker to take the rest when it should be 

taken and for the proper length of time. To meet this condition, I 

devised a ''rest clock," easily made from ordinary dollar clocks with 

new faces put on and placed near the work. One clock can be used 

by a number of workmen. The man works when the hand is in the 

white space and rests when it is in the black space. Clock 56 covers 

rest periods of 2 minutes and work periods of 10 minutes. Clock 57 




STANDARDIZING THE OPERATIONS 



177 



covers rest periods of 12 minutes and work periods of one hour. This 
in both cases equals 16 per cent rest, but arranged for in different 
ways. Clock 56 would cover an intensely fatiguing operation, while 57 
would cover one not so tiring, one requiring close application rather 
than the use of muscular force. But you say the work may be 
special, or standard and only made 
once in a great while, and that 
study and standardization would 
be valueless. When time study is 
out of the question, an estimate 
should be made — not as it is usually 
made, but by first reducing the 
work to the principal factors, and 
then setting a fair time opposite 
each factor, this to be reviewed by 
another person than the one mak- 
ing the estimate. The "operation 
analysis" shown in Fig. 58 will 
indicate how to divide a job into 
its elements. The standards set in 
this way will not be far off. There 
is another side to it. Special work, 
as in the foundry for instance, is 
made up of considerable in the way 
of factors that are more or less uni- 
form as to the work done. Study ^^S- 57- Rest Clock for a Period of 12 

IT 1 • i? 1 Minutes After Every Hour of Work 

shoveling and ramming, tor example, 

on various classes of work, and when a considerable body of data 

has been gathered, compile it conveniently and use this rule: 

C = Cubic contents of flask. 

Ci = Cubic contents of pattern. 

F = Factor in hours per cubic foot of sand shoveled and rammed, for the various 

classes of work. 
T = Time for "shoveling and ramming. 
Then T = (C — Ci) X F. 

As another example, setting gaggers can be used, for which two rules 

can be worked up: 

1. B = Number of bars in cope. 
L = Length of bar in feet. 
F = Factor in hours per foot of bar. 
T = Time of setting. 




178 



INTRODUCING EFFICIENCY PRINCIPLES 



OPERATION ANALYSIS 


OPERATION 


UNIT 


FACTOR 


EST. 
TIME 


SHAPING PIT 










MAKING BED OF PIT 










PLACING BOTTOM BOARD 










PATTERN-PIT-DKAG 










DRAG 










FACING AROUND PATTERN 










RODS 










RAMMING TO JOINT 










VENTING 










MAKING PARTING 










ROLLING DRAG 




















PLACING COPE SIDE OF PATTERN 










COPE 










FACING AROUND PATTERN 










SETTING HOOKS 










RAMMING COPE 










LIFTING OFF 










MAKING LOAM PLATES 




















DRAWING PATTERN FROM PIT-DRAG 










.. COPE 










FINISHING PIT-DRAG 










COPE 




















SETTING CORES 










PIPES 










SECURING 




















SKIN DRYING 










PLACING LOAM PLATES 










CLOSING MOULD 










MAKING RUNNER AND HEADS 










CLAMPING AND WEIGHTING 










POURING 










FEEDING 










TOTAL 






o o o o 



Fig. 58. Operation Analysis 



The Engineering JUagatine 



STANDARDIZING THE OPERATIONS 179 

Then 

T = 2 (B + I) X L X F. 
2. B = Number of bars in cope. 

L = Length of bar in inches. 

S = Spacing between gaggers in inches. 

F = Factor in hours per 100 gaggers. 

ThenT = (^^^^^)xF 

The question is sometimes asked — *' Shall we standardize on the 
basis of conditions as they are, or as they should be.'^" Part of the 
standardization contemplated improving the conditions, as was out- 
lined in the preceding paper. In other words, in standardizing a ma- 
chine operation, the machine should receive its share of attention. 
The speed, feed, and' cut should be fixed at what the machine can 
properly do. Belts should be kept at proper tension and inspected 
periodically. Jigs should be considered. Prints or samples should be 
available and in condition to use. Cutting tools should be kept on 
hand in sufficient quantities and properly forged, tempered, and ground. 
With this as a basis, determine the elements in sequence, best mo- 
tions, and fair time. It may be true that if a different machine be 
purchased or an altogether different way of jigging be introduced it 
will double the production, but this does not mean that the operation is 
50 per cent efficient. The Twentieth Century train is 100 per cent effi- 
cient if it makes the trip from New York to Chicago in 20 hours. It 
has made the run in 18 hours and might be able to make it in 16 hours, 
but so long as the officials of the road, after proper consideration, pre- 
scribe 20 hours as a fair and safe time, then the train attains standard 
when it leaves and arrives on time. 

Should this standardization be on the basis of studies made of 
what the best or average man was able to do? Study the best man 
by all means as he will work more uniformly, with less in the way of 
lost motion than the average man, and much of what he does can be 
taught to the other men. Make the task, however, so that the average 
man can by consistent effort attain the standard, thus allowing the 
best man to make more than the prescribed bonus offered for standard 
attainment. On this basis, as will be shown in the next chapter, the 
poor workman will make his daily wage and possibly 5 per cent bonus, 
the fair to average worker will earn from 5 to 15 per cent, while the 
best man will make from 15 per cent to 50 per cent in bonus. This is 
just and reasonable, for after all it is going to be a case of exertion, 



180 



INTRODUCING EFFICIENCY PRINCIPLES 



skill, and co-operation determining what the man is going to get as a 
bonus. 

How about the "old man" and the apprentice? I have always felt 
and contend in my work that the ''old man," as he is slightingly re- 
ferred to, has a place in industry. His experience is valuable. He 
can be used as trainer and coach. He may not be fast, but he is sure. 
He may on the other hand prove to be both skillful and rapid on certain 
work. At any rate, for the sake of his past services, don't turn him 
adrift. If he is too old and cannot work, pension him. If he can work, 
find out what is best for him to do and give him a schedule with a 
sufficient allowance added thereto, to justify him in continuing to do 
his best. It won't cost much if anything. The apprentice should also 
have an allowance added to his schedule that will warrant him in 
exerting himself. The apprentice, the average mechanic, and the 
''old man" will have different wage rates, and as bonus is based on 
wages there is little likelihood of a clash on account of bonus earnings. 

It therefore follows that once elements have been listed in sequence, 
motions considered, and times decided upon, the work can be defined 
in a comprehensive manner. Fig. 59, "Permanent Work Schedule," 
illustrates one means of defining the operation in detail, covering 
machine-shop work. The entries on the face explain themselves. The 
wording necessary to describe the operation is written under "opera- 



Form 440-5 JI-O.27-11 



PERMANENT WORK SCHEDULE 



Part 



Symbol 



Group 



Sch. No. 



Mat'l 



Department 



Study No. 



OPERATION TO BE PERFORMED 



Machine 



Belt 



Motor 



Feed 



Speed 



FOR SKETCH SEE REVERSE SIDE 



Cut 



Tool Steel 



Tool Number 



TOOLS 

IN USE 



NUMBER MACHINED 
AT ONE TIME 



STANDARD TIME 



Under eiistin; conditions and as outlined herein Standard time for the above work will be 



Time for settiug up 

Time for operation 

Time for taking out work. 
Total allowed 



HOURS 



Time iu 



For_ 



Man 
Gang 



Hrs. 

-Pes. 
.Men 



No. of Pes. 
Per 



At Time 

Per 

Is 



This is a permanent schedule and the time will remain in efftut until design, conditions, 
equipment or method of manufacture arc changed. 



D=-Time for one piece. For more than one piece use rule 
Pes. X B+ A +C = Std-Time 



Date 
Effective 



Jigs-Special Fixtures 



Approved 



Date Cancelled 



See New Schedule 



Fig. 59. Form for Work Schedule 



2Vke Engineering Magatin* 



STANDARDIZING THE OPERATIONS 



181 



Form 378 
MoC-M.C.Co.P.W. 


SCHEDULE 




CLASS 
COJJTRACT DWG. MARK \4rK ^^No7 ^NO.' 


r ) 


TOTAL TOTAL 

ACT. T. STO. T. EFFY. 


FITTING 




PLANEING 




RIVETING 




REAMING 




DRILLING 








V_^ 


OPERATION 


Op No. 


No. Pes. 


LENGTH 


HEIGHT 


RIVETS 


Std 
Gang 


Man 
Hours 


Effy 


S.T. 
Ea. 


S.T. 
Total 


No. 


H 


M 


C) 




























\J 












































































































































^-^ 




























u 
























































n 


- 


























v_y 


































• 



















































The Engineering Magannt 



Fig. 60. Form for Boiler-Shop Schedule 

tion to be performed," with a sketch on the reverse side (cross ruled). 
It is also well to know the tool number, kind of steel, number of tools 
at work at one time, and pieces machined at a setting. Jigs and fix- 
tures should also be listed. The data as to standard time are given. 
Fig. 60 is a boiler-shop schedule, while Fig. 61 covers foundry work. 



W 760 MMM 310 


SCHEDULE 


WORK 


SCHEDULE NO. 


STUDY NO. 


DEPT. 


RIGGING 


PATTERN OR PRINT NO. 


MACHINE NO. FLOOR NO. 


OPERATION 


SYMBOL 


UNDER CONDITIONS AS THEY NOW EXIST AND 
WITH THE PRESENT EQUIPMENT THE STANDARD 
TIME ON THE WORK AS DESCRIBED, AND FOE THE 
NUMBEROFMEN LISTED.IS TOBE 


NUMBER OF PIECES 
PER AT 

TIME PER 


MOULDERS 




COREMAKEES 




GANG „ ^ 
MAN HonRJ? PF.R PIEC 


JES 


APPRENTICES 






IS _ 


THIS TIME TO REMAIN UNCHANGED UNTIL CONDI- 
TIONS OR EQOIPMENT ARE CHANGED 


HELPERS 








DATE EFFECTIVE 


APPROVED BY 

SUPT. 





Fig. 61. Form for Foundry Schedule 



The Engineering Magazine 



182 



INTRODUCING EFFICIENCY PRINCIPLES 



It can be readily seen that after so thorough a defining, Httle room 
is left for a misunderstanding as to what is required, how it should 
be done, etc. For this reason it is a most essential factor. There 
would be few if any piece-work disputes if operations had been pre- 
viously standardized and carefully written up in permanent shape. 

It sometimes happens, 
however, that there exist 
in a plant excellent oppor- 
tunities for betterment, but 
that because of pressure of 
work on other parts of the 
proposition, no efforts can be 
made to start standardiza- 
tion in the right way. In 
cases of this kind special 
schedules can be made along 
the lines outlined for per- 
manent schedules. The work 
is to be briefly studied and a 
fair time quickly determined. 
Such schedules should con- 
tain this wording: 

This is a special schedule and 
the management reserves the right 
to substitute a permanent schedule 
as soon as a careful study can be 
made of the operation. 

In this way co-opera- 
tion can be induced from 
the start, and later when 
Fig. 62. Form for a Simple Instruction Card operation study can be taken 

up systematically, permanent schedules can be substituted. 

In order to acquaint the worker properly with what is expected of 
him, it is a good plan to give him a sheet showing the essentials. If some 
such means is not provided, especially with reference to ma- 
chine-shop work, the man relies on his memory solely, or the foreman 
has to figure things out all over again each time the operation is per- 
formed. This notification can vary all the way from a simple state- 
ment of facts to an elaborate instruction card. An excellent means 



WILLIAMS AND COMPANY 
INSTRUCTION CARD 


PART SYMBOL 


MATERIAL DEP.T 


MACHINE 


TOOLS IN USE PCS MACHINED AT ONE TIME 


OPERATION 


MACHINE 


TOOLS 


^ 


NAME 


SPEED 


FEED 


CUT 



















































































































































































































































The Etiifinecring Magazine 



STANDARDIZING THE OPERATIONS 183 

is to place this information on the drawing. A simple form of in- 
struction card is shown in Fig. 62, while a more elaborate form is 
shown in Fig. 63. 

Often a general schedule can be made to cover a variety of work 
after sufficient studies have been made. The general riveting schedule 
below will illustrate what is meant. 

GENERAL RIVETING SCHEDULE 

Standard gang — 4 men 

Riveting using pneumatic hand riveter as per the following table, all handling 
of material being included in the schedule: 

With crane 
Rivets Hours per 

per hour 100 rivets 



Number rivets 

per piece 

1 


Symbol 
A 


Without crane 
Rivets Hours per 
per hour 100 rivets 


2 


B 




4-6 


C 




7-10 


D 




11-15 


E 




16-20 


F 




21-30 


G 




31-40 


H 




41-50 


I 




51-75 


J 




76-100 


K 




101-150 


L 




151-200 


M 





Painting, yard labor, shop labor, cranemen, shipping and the like 
can also be put on schedule. The foremen should have schedules 
based on cost and production or on the efficiency of the men under 
them. A yard schedule is shown in the following: 

YARD SCHEDULE 

Covering unloading box cars — loose materials, such as sand, silicate, etc. — throw- 
ing material to ground. 

Tool — No. 3 contractors shovel. 
Load — 20 lb. per shovel. 
Time per shovel — .30 minutes. 

= 112 shovels per ton. 

201b. 

112 X .30 minutes = 34 minutes per ton. 

Tons per man hour — 1.76. 

Another schedule is shown in the following: 



184 INTRODUCING EFFICIENCY PRINCIPLES 

GENERAL SCHEDULE COVERING CUPOLA WORK 

For properly attending to the cupola, as hereinafter provided for, a bonus of 20 
per cent will be paid to the men employed in the cupola gang, on the basis of a stand- 
ard cost of 50c per ton of good castings — the head melter to receive one-third of the 
bonus earned, the balance to be divided between the other members of the gang 
in proportion to their wages and time as shown for the pay period. 

Work covered by the schedule is as follows: 

Relining cupola when necessary. 

Getting materials from yard to charging platform. 

Weighing materials. 

Charging and tending cupolas. 

Cleaning and daubing ladles. 

Removing cupola dump. 

Preparing cupola for each day's heat. 

Breaking stock when necessary. 

Keeping charging platform clean. 

General work about cupola not included in above. 

Bonus will be paid on the basis of the following scale: 

Cost per ton Bonus per cent 

$0.72 0.1 

0.67 1.3 

0.63 3.3 

0.59 6.2 

0.56 10.0 

0.53 15.0 

0.50 20.0 

From the average weight of good castings cleaned and cost of cupola gang for 
the first two weekly periods following the introduction of this schedule, the rate 
per ton will be ascertained, which will be divided into the standard cost to get the 
efficiency. The result of each succeeding two weekly period will be added to the 
result for the preceding period and an average found until the 5th two weekly period 
is reached, when the 5th will be added and the 1st dropped. This will be the rule 
in all subsequent figuring — one will be added and one dropped. 

Effective Signed 

In standardizing the duties of persons in functional positions, the 
individual should be given a title, relations should be established, and 
the duties should be outlined. To give an idea of what is meant, the 
following is offered: 

SPEED AND FEED WORK 

1. Title of person in charge — Supervisor of Speeds and Feeds. 

2. Relations: Member of Staff, Operations Division and responsible to the 
Chief-of -Staff as regards all work in connection with tests, experiments, study, stand- 
ardization and preparation of instructions. 

Member of Operations Committee of Line organization and responsible to its 



i 



STANDARDIZING THE OPERATIONS 



185 





SMITH JONES COMPANY 

INSTRUCTION CARD 


PART 


DEPT TOOLS IN USE 


SYMBOL 


MAPHTNF MATL ^^^ MACHINED 
MACHINE MAIIj ^,j, q-^^ TIME 


OPERATION 


MACHINE 


TOOLS 


REMARKS 


STAN'DARD 
TIME 


^ 


IJAME 


SPEED 


FEED 


CUT 


NAME 


•^ 


SYMBOL 


SIZE 



































































































1 ! 






— 
















— 1 












































TOTAL 






SKETCH OF PIECE 


TOLERANCE 


__ 


- 


SYM 


PLUS 


MINUS 


A 






B 













D 






E 






F 






G 






H 






I 






J 






K 
























L 







Fig. 63. Form for a More Elaborate Instruction Card 



The Engineering Magaeine 



chairman, Mr. 



as regards the actual work of instructing workmen in use 



of best combinations, seeing that these combinations are used, analyzing limits 
reached and outlining betterments. 

3. Functions: Among the duties and responsibilities of the Supervisor of Speeds 
and Feeds are: 



A. 
B. 
C. 
D. 
E. 
F. 
work. 
G. 
H. 



Study of the proper use and treatment of high-speed steels and cutters. 

Arranging for design of tools as to shape, size, clearance and lip angle. 

Determining best cooling agents. 

Standardizing the forging, tempering and grinding of tools. 

Determining duration of cut without regrinding. 

Determining best combination of speed, feed and cut for any given piece of 



Directing men as to use of combinations decided upon. 
Study of machines as to pulling power, kind of work, position of work, 
position of tools and position of worker. 

I. Responsibility for seeing that instructions are carried out by foremen 
and workmen, to the extent, if necessary, of demonstrating that the combina- 
tions are practical. 

Effective Signed 



: 



186 



INTRODUCING EFFICIENCY PRINCIPLES 



Fm. 409- SOO- 3-14 



REQUISITION FOR CHANGE IN SCHEDULE 



JOB 



DATE 



SCHEDULE NO. 

NO. WITH STANDARD OF 



ON OPERATION 



HOURS PER 100 PIECES 



SHOULD BE CHANGED FOR FOLLOWING REASON; 



SIGNED 

STUDY NO. OF SCHEDULE IN QUESTION 

AVERAGE EFFICIENCY OF OPERATION 



AVERAGE EFFICIENCY OF MAN ON ALL OPERATIONS 

LENGTH OF TIME IN EFFECT 

PROPOSED CHANGE HRS. PER 100 

NEW EFFICIENCY ON BASIS OF PREVIOUS PRODUCTION. 

CHANGE ADOPTED 




Ttie Engintering Magaziru 



Fig. 64. Form for Requisition for Change of Schedule 

A schedule may have to be changed after being put into effect. The 
conditions may be different from those so clearly defined in the schedule. 
Changes may be made in method of manufacturing, in design or in 
material. Time may prove insufficient. To handle cases of this kind 
in a systematic manner, Fig. 64 can be used. 

In brief, standardization of operations leaves nothing to guess 
work, to chance, to memory — it obviates the necessity for scheming 
things out each time a piece of work is done — it finds out what should 
be done and records it properly for all time — it serves to eliminate 
excuses as well as disputes. In the future standardization will have a 
far greater influence in industry than we have any idea of. 






Chapter XYII 
THE BONUS PLAN OF WAGE PAYMENT 

THE engineer is now ready for another important step in his 
campaign. He has inaugurated planning methods. Time- 
study work has been started. He has taken steps to bring about 
standardized conditions and operations. He is therefore ready to go 
to the workmen, telhng them that since conditions and planning have 
been bettered, they can assist materially by taking every advantage 
of the improvements introduced. To get them to do this he proposes 
the bonus plan of wage payment, based on these underlying consid- 
erations : 

(1) Each man should see an ideal ahead of him that his mentality 
can readily comprehend, for just as surely as he attains the ideal, it 
is automatically replaced by one still higher. Thus standardization 
becomes not crystallization, but evolution. 

(2) In all the world there are no two persons exactly alike, and 
remuneration should attempt to reconcile the differences. 

(3) Effort, interest and exertion are just as important as reaching 
a goal, and should therefore be rewarded. 

These propositions involve definite standards of aUainment, reicard 
based on individual efficiency, and partial remuneration for partial at- 
tainment. 

Before we can proceed to a detailed discussion of the plan in ques- 
tion, which all will recognize as that developed by Harrington Emerson, 
we must first have a clear conception of just what the term ''efficiency" 
really means. If a man walks two miles per hour when he could reason- 
ably walk four miles per hour, his efficiency is 50 per cent, because he 
only does one-half of what he can do. Efficiency is therefore the ratio 
between what is done and what can be done — the relation between 
performance and the possible attainment, between the actual and the 
standard. The rules governing the calculation of efficiency are there- 
fore essential to begin with. They are as follows: 

187 



188 INTRODUCING EFFICIENCY PRINCIPLES 

(1) As to time: 

A = Actual time 

S = Standard time 

E = Efficiency in per cent. 
To figure efficiency with actual and standard times known: 



A 

To figure actual time with standard time and efficiency known: 

S 



E 



= A 



To figure standard time with the actual time and efficiency known: 

A XE = S 
(2) As to quantity: 

A = Actual quantity 

S = Standard quantity 

E = Efficiency in per cent. 
To find the efficiency with standard and actual quantities known: 
A 

To find standard quantity with efficiency and actual quantity known: 

E 

To find the actual quantity with efficiency and standard quantity known: 
S X E = A 

If, therefore, comparisons are made between the standards deter- 
mined as fair and within the reach of the men, and the actual accom- 
plishment, a basis is provided for arranging for individual reward. 
The preceding paper on "operations" and the one on the "time study" 
will clearly show the methods to follow in determining these standards. 
The matter of reward is thus in order. 

Reference to Fig. 65 will show the bonus curve used and advocated 
by me. The heavy curved line is the bonus line starting at 67 per 
cent efficiency, which means the workman is expected to attain two- 
thirds of a fair standard before he begins to earn anything additional 
in bonus. In other words, the man can take 50 per cent more time 
than that called for by the standard, for which he receives day wages 
only. Any reduction in time under this 50 per cent margin would 
be accompanied by a proportionate amount of bonus. 

The bonus line is divided into three sections. A, B and C. Men of 
low eflSciency do not become men of high efficiency over-night. They 



THE BONUS PLAN OF WAGE PAYMENT 



189 



60% 



70% 



EFFICIENCY LINE 

80% 



90% 



100% 




DAY WAGE LINE 

Fig. 65. Bonus Curves 



T/u: £ngijuering Magazine 



sometimes feel that they cannot attain the standard determined upon. 
The aim is therefore to induce the men to work up the "A" incHne 
from 67 per cent to 85 per cent efficiency. They then have the 
incHne "B" ahead of them, with promise of additional earnings if they 
get into this class. Men are not satisfied with standing still, nor do 
they want to be considered as low-efficiency men. Finally when men 
are well along towards the 100 per cent mark they are attracted by 
the additional 5 per cent premium for qualifying as 100 per cent men. 
A bonus of 20 per cent plus 5 per cent premium seems worth the 
additional effort to the man who is within 3 per cent or 4 per cent 
of the goal. 

For comparative purposes the Emerson curve has been shown by 
a dotted line where it varies from the curve recommended. The extra 
amount indicated by the shaded zone 1 is to warrant men, who might 
otherwise become discouraged in making the effort necessary, in at- 
tempting the attainment of efficiencies greater than 67 per cent, and 
the amount measured by the shaded zone 2 is a premium for those 
who average 100 per cent of the standards or better. 



190 INTRODUCING EFFICIENCY PRINCIPLES 

In one case the client complained because bonus did not appeal 
to the workers as it had on the start. The 20 per cent in bonus for 
100 per cent efficiency did not seem to justify the effort, and as a result 
workers were content to earn from 5 per cent to 15 per cent. When 
the bonus plan was first considered in this case, the engineer urged 
the additional premium of 5 per cent for 100 per cent workers, as a 
means of eliminating this very tendency. The basic theory was that 
5 per cent in one lump would attract the worker who might otherwise 
be satisfied with an ordinary bonus. The client could not see it. Who 
was to blame for the ultimate condition, the engineer or the client.'^ 

The chart. in question shows a third line (dot and dash) which may 
be interesting to the student of bonus plans. The claim has been 
made that because the Emerson and Knoeppel bonus lines mean 
slightly decreasing costs per piece, they are unfair to the workmen; 
that the rate per piece should remain constant as in the straight piece 
work plan. Bonus paid on the basis of the "X" line does this, and 
its comparison with the other two lines will be found interesting. 

The bonus scale which I recommend is as follows: 

Efficiency Bonus Efficiency Bonus 

per cent per cent per cent per cent 



67 





86 


7.5 


68 


0.5 


87 


8.0 


69 


0.7 


88 


8.5 


70 


1.0 


89 


9.0 


71 


1.4 


90 


10.0 


72 


1.7 


91 


11.0 


73 


2.2 


92 


12.0 


74 


2.6 


93 


13.0 


75 


3.0 


94 


14.0 


76 


3.3 


95 


15.0 


77 


3.7 


96 


16.0 


78 


4.0 


97 


17.0 


79 


4.4 


98 


18.0 


80 


5.0 


99 


19.0 


81 


5.2 


100 


25.0 


82 


5.6 


101 


26.0 


83 


6.0 


102 


27.0 


84 


6.5 


110 


35.0 


85 


7.0 


120 


45.0 



In the practical application of the bonus plan, from the basis out- 
lined, the service card described in the chapter on "planning" should 
have the following spaces: 



THE BONUS PLAN OF WAGE PAYMENT 



191 



Schedule 
No. 


183 


Number 
of pieces 
per hour 


31.2 


Standard 


For... 
Men 


Total 

Standard 

Time 






100 




3 2 
Hours 



Fig. 66. Service Card 

As work is planned for men working on bonus, the schedule num- 
bers should be shown, the standard time per unit, or 100 units, and 
the pieces per hour. The standard time is given to facilitate figuring. 
If the time were 3.2 hours per 100 pieces, and the man completed 54, 
the calculation would be: 

54 X .032 = 1.7 hours of standard time. 

The pieces per hour entry is for the convenience of the workman, 
who can more easily comprehend the task ahead of him when he knows 
that he is asked to do 31.2 pieces per hour, instead of being forced 
to reduce the standard of 3.2 hours per 100 pieces to understandable 
terms. A further advantage in favor of furnishing this information 
is that it enables the workman to keep in touch with the situation. 
If an error or change is made, the workman knows it immediately 
from his service card. 

In this connection it is an excellent plan to give the workman, in 
addition to any instructions that may be prescribed, an outline of pro- 
ductions required at varying efiiciencies. A standard expressed in terms 
of pieces per hour sometimes scares a workman. He feels it is an im- 
possible task and as a result is discouraged before he even tries. The 
facts can be presented as follows: 

Operation Part No Schedule . 



Pieces 


Efficiency 


Bonus in Cents 


per hour 


per cent 







45 


67 






50 


70 


1 per 


dollar of wage 


60 


80 


5 " 


(( << a 


68 


90 


10 " 


«< (( a 


75 


100 


25 " 


a << a 


83 


110 


35 " 


H (( (( 



192 



INTRODUCING EFFICIENCY PRINCIPLES 



Number. ^IJ^ IUte aJ* 

Name . _ -^tT^^??/ _ &:?^;<^^4^ BONUS RECORD ceet A 


Date 


No. 


Men 

Nos. 


TIME 


J' 

Effy. 


Bonus 


Date 


SCH, 

No. 


Men 
Nos. 


TIME 


% 
Efft. 


Bonus 


Act. 


Std. 


Act. 


Std. 


y^o 






/o 


c 


7 


3 




























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9 


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The Entjineering Magazine 



Fig. 67. Bonus Record 



As can be seen, the operator first sees the 45 pieces per hour. He 
knows he can do this. He sees the 50 and 60 and feels that by a httle 
extra effort he can turn out the required amount. He feels 68 would 
be hard, 75 difficult, with 83 out of the question, but he knows he can 
do enough to qualify as a bonus earner to begin with, and this is an 
important consideration with many workmen. As he becomes more 
familiar with the plan and the work he is not so afraid of the standards 
as he was to begin with. 

Each day the service cards turned in, covering the previous day's 
work, should be sorted according to men and checked to agree with 
the time spent in the plant. The amount produced should then be 
multiplied by the standard times, and the product placed in the space 
headed "total standard time," on service cards. When all the service 
cards have been figured in this way the entries should be transferred 
to the ''bonus record," each workman on schedules to have one. 

Fig. 67 will explain fully the bonus record. Entries are to be made 
daily; at the end of the week the actual and standard times are added, 
the efficiency is determined by dividing the standard time by actual 
time, and the bonus is figured. In illustration A the efficiency is 95.3, 
paying 15 per cent bonus, so the calculation would be: 

(58.5 hrs. X 25 cents, wage rate, X 15 per cent, bonus factor) = $2.19 bonus. 

This information is then entered on a bonus check in duplicate, 



THE BONUS PLAN OF WAGE PAYjMENT 



193 




Fig. 69, the original to be given to the 
workman and the duphcate sent to the 
payroll department for making up the 
bonus earnings. 

To facilitate the work of figuring 
bonus, a slide rule can be used to ad- 
vantage. Fig. 68 shows one devised by 
the author. For example, assume that a 
22-cent man has 54.8 standard hours and 
59.4 actual hours. The rule to follow in 
explaining the setting of the rule in the 
illustration is as follows: 

1 — Set 59.4 on No. 2 scale under 54.8 on No. 1 

scale. 
2 — ^Read 92.3 per cent efficiency from No. 1 scale. 
3 — Set X on No. 2 scale with x on No. 1 scale. 
4 — Set Y on No. 3 scale under 59.4 on No. 2 scale. 
5 — Set X on No. 4 scale under 22 cents on No. 3 

scale. 
6 — Move slide to 12 per cent on No. 4 scale. 
7 — From sHde read off $1.57 from No. 5 scale. 

This is the bonus. 

In connection it might be well to say 
that bonus is figured on actual times spent 
on schedules, and not on standard times. 
Further, bonus is not paid on any one job 
or day's work, but on the average efficiency 
of all jobs for a bonus "period. These 
periods should be no longer than one 
week in length, for the workmen are 
likely to lose interest if the period is too 
long, especially if they are not advised 
regarding their showing. It is an excellent 
plan for some little time after starting the 
bonus plan to notify the men each day 
what their efficiencies and bonuses are. 
This helps in keeping up interest. 

Amounts earned are paid on regular 
pay days in separate envelopes. Wage and 
bonus are two distinct things, and should 
be divorced in all considerations of the 



L 



194 



INTRODUCING EFFICIENCY PRINCIPLES 



BONUS CHECK 



Man No. 



■?/• 



Dept. 



Name- 



Is entitled to 




^l^. 



During period ende4f^ 



f^' ^ y f or attaining efficiency of / '• J 



per cent. 



Standard Time. 



Actual Time . 



^^- f iHours 



.Hours 



Signed by_ 



l^fjrr. 



Ud=^ 



subject. The separate envelope does this, besides giving the 
man what he considers and can use as his own. As several work- 
men have said to me, "The wage envelope is for the wife, but 
the bonus belongs to me for my spending money," and many have 
gone after bonus for the extra money. Others have said that they 
liked to go home with the bonus envelope as it shows they were able 
to make extra money. By averaging the efficiencies over a period it 
serves to reconcile any inaccuracies which may creep in through un- 
foreseen or unpreventable 
contingencies. For this rea- 
son the same degree of 
painstaking and detailed 
study which would be re- 
quired if bonus was paid 
on separate jobs is not 
necessary, making the plan 
more elastic, easier to in- 
stall and productive of re- 
Fig. 69. Bonus Check ^^j^^ j^ ^ ^j^^^^^^ ^.^^ jf 

a man is working on a schedule that is seemingly hard to attain, 
he does the best he can and takes every advantage of the op- 
portunity to average up when working on the easier schedule. 

If the workman shows an efficiency of 100 per cent or better, for 
the bonus period, his regular bonus rate is increased by a premium 
of 5 per cent. In the illustration B on the bonus record the efficiency 
is 109.6 per cent, so the bonus rate is: 

20 per cent for attaining 100 per cent efficiency 
10 per cent for 9.6 per cent above 100 per cent efficiency 
5 per cent premium for qualifying as 100 per cent man 

35 per cent total bonus rate which gives the man — 

(60 hrs. X 25 cents, wage rate, X 35 per cent bonus factor) = %5.^5. 

The bonus rates are in even percentages, the man getting the 
bonus factor for the next higher efficiency than the one attained if 
the fractional part of the efficiency is 0.5 or better. 

The average of A and B (Fig. 67, bonus record) is then figured to 
get at the showing for the two weeks — in this case 103 per cent and 
$7.34 bonus. 

In closing the bonus record, any time entered in the actual column 
against uncompleted work should be deducted and carried to the next 
period. If this is not done the efficiency of the men will be lowered, 



THE BONUS PLAN OF WAGE PAYMENT 



195 



because of an entry of actual time against which there is no corre- 
sponding entry of standard time. This will not have to be done, how- 
ever, if proportionate standard times on unfinished jobs can be figured 
and entered. 

So far we have been crediting the man only with standard times. 
We must arrange to charge him back with rejection for which he is to 
blame. The workman reports a definite production, which is figured 
up at so much standard time per piece, on the assumption that the work 
will prove satisfactory and 
pass inspection. This does 
away with waiting until in- 
spection before calculating 
the efficiencies, which in 
many cases would cause 
considerable time to elapse 
before jobs could be figured. 

As work is rejected a 
''shop rejection card" (Fig. 
70) is made out fully outhn- ^ig- 7o. Shop Rejection Card 

ing the reason and fault and whether or not man is to be charged 
back with the work. Two plans are possible: 

(A) Deduct the amount of standard time credited to the man, 
leaving the actual time showing in the actual column. 

(B) Deduct both actual and standard times for the rejection. 
Suppose, for instance, that the man's actual time is 60 hours, and 

the standard time is 54 hours, making the efficiency 90 per cent, which 
would entitle him to bonus of $1.50 if his wage rate was 25 cents per 
hour, and that a rejection is reported of 5.0 actual hours and 4.3 standard 
hours. According to plan A the entry would be: 

Efficiency 



SHOP REJECTION CARD 


Order No. 


Mtteriil Rejected 


Pa. 


lte)eetedbT 


Job No. 


DMcReicclcd 


Size Doors 


ffeasoD; 




Frak: 


Work nude by Mm No. 


MKtneNe. Dite 






Iitautobeduned 


Yes 

No 


b work to be repbced 




Y<* 

No 



Actual 


Standard 


60 


54.0 




4.3 



60 49.7 80.2 

Bonus would be 60 hrs. X 25 cents wage rate X 5 per cent bonus factor = 75 cents. 

Under plan B the entry would be: 

Actual Standard Efficiency 

60 54.0 

5 4.3 

55 49.7 90 

Bonus would be 55 hrs. X 25 cents wage rate X 10 per cent bonus factor = $1.37. 



196 



INTRODUCING EFFICIENCY PRINCIPLES 



SHOP ALLOWANCE CARD 



Sf 



CL 




y^UA^>.4^(, 



' ^2.S- 



Is emitted to iBowince for time as shown below for foUowJnK reason 






/^J2^ 



^ 



^Qg-/^^. 



'A 



;H / 



.^ 



^13 



Cbirxe Aocounl 



/«? 



^^>^/^, 



CSt^o 



Plan B is not so severe on the men and can, in most cases, be used. 
When workmen continue to be careless, however, and are unwilling 
to co-operate in efforts to turn out good work, the company is then 
justified in resorting to plan A. 

We can now take up the matter of allowances. If a man performs 
a 10-hour job in 12 hours, 10 hours of which have been spent on the 
work and two wasted because of conditions beyond his control, his 
efficiency is 100 per cent, while the job efficiency is 83 1/3 per cent, the 

loss of 16 2/3 being charge- 
able to the management. In- 
stead of penalizing the man 
who did just what you asked 
him to do, the management 
has an excellent reminder as 
to where, how, and why it 
fell down. Because of this 
separation and because the 
work of planning and stand- 
Fig. 71. Shop Allowance Card ardization is undertaken by 
the management, it can be readily seen that the responsibility of 
the management is just as clearly defined as that of the men. The 
rule to observe in connection with allowances is: 

(1) If delay is fault of man, no allowance; 

(2) If fault of company, full allowance for time lost to men; 

(3) If fault of neither man nor company, each is to stand one-half 
of the time lost. 

As soon as a man is delayed he should ring the annunciator, or 
report to the dispatching office, and get an allowance card (Fig. 71). 
When he is ready to resume the work, he is to again ring or report 
to station and cancel allowance card. The service card need not be 
changed at all, for the time as shown by all allowance cards can be 
deducted the next day from the service cards turned in. From this 
it will be seen that to bonus cards are entered actual times less allow- 
ances. Allowance cards are to be made out by dispatcher, and ap- 
proved by foreman. 

Records showing department and plant efficiencies are next in 
order. From the bonus record cards filed by departments, a recapit- 
ulation can be made out, after which a summary covering the plant 
is in order. Figs. 72 and 73 so clearly illustrate the method that no 
further explanation is necessary. 






THE BONUS PLAN OF WAGE PAYMENT 



197 



EFFICIENCY RECORD 


y^ fP] PERIOD iy 


MAN 


TOTAL 

HOURS 

WORKED 


ACTUAL 

TIME ON 

SCHEDULES 


STANDARD 
TIME 


EFFICIENCY 


BONUS 


WAGES 


WAGE 
EATS 
PER 

HOUR 


BONUS 

BATK 

PER 

HOUR 


BONUS 
AND 

WAGES 
PER 
HOUR 


-^0. 


NAME 


TUIS 
PEEJOD 


PREVIOOS 
PERIOD 


TO DATE 


3/0 


UyxUMyc<yyn^ 


(oO 




(oO 





ry 


^ 


9/ 


3 


^9 


S 


90 


s' 


/ 


31 


71 


00 


.2.0 


.01_Z 


.XXI 


S/JL 


(P^^tjiyiAy 


(oO 




Jl 


s 


vj'X 


^ 


9r 


3 


92. 


(o 


S9 


s 


z 


/f 


/7 


63 


.zr 


.037 


.Z^7 


3/3 


^yuk^o^iJt^ 


(dO 




^S 





^^ 


I 


/o% 


6 


^r 


s- 


^7 


7 


3 


/J' 


77 


U 


.x^^ 


,070 


.310 


3/9 


/^Wn^f^^CAy 


loO 




loO 





J'2_ 


9 


U 





97 


7 


^ 


S' 




?1 


/o 


fo 


./^ 


.0/^" 


./9y 


3/6' 


^^-o^ukx/yiAy 


(oO 




Xo 





/^ 


I 


?/ 





^7 


3 


u- 


6 




7^ 


"7 


70 


x^ 


.ot7 


.7-7-7 


3/^ 


7?l-yiQyy>UUui 


(oO 




JT 


J' 


30 


r 


s^9 


9 


J7 


2- 


7-9 


y 






/¥- 


SS' 


.r7 


— 


.zyo 


3/7 


jSlaJiA- 


(oO 




s-'o 


7 


¥-X 


7 


i7 


(o 


^2- 


S' 


V 


J' 




^9 


/l 


h7 


.2-^" 


.o/y 


.Z&7 


3/i 


-y/iI^M 


(dO 




^s 


-i" 


r^ 


7 


//I 


i 


/OS' 


7 


9^ 


J' 


s 


y3 


/^ 


rj' 


.50 


./7V- 


.-^/^ 


3/9 


TSamimtu 


(dO 




JT 


1 


3/ 


s 


^'7 





Jl 





^^ 


7 






/3 


io 


.zr 


— 


.T^O 


3X0 


^rn^UiAy 


(otr 




{of 


7 


rf 


7 


9S' 


/ 


9/ 





91- 


r 


X 


07 


/3 


S7 


.Z2- 


.033 


.2-^3 




U 






























































































































TOTALS 


^os" 





j'vr 


/ 


v-n 


/ 


U 


r 


^7 


3 


f/ 


i 


7^ 


ri 


/IZ 


S"! 


.Z37 


.031 


.z(o9 


RECAPITULATION 


INEFFICIENCY REPORT 


TOTAL HOURSWORKED 


(DOS' 


ACTUAL TIME ON SCHEDULES 


r/x. / 


HOURS MEN INT)EPT. NOT ON SCHEDULE 


3/ L. 


ALLOWANCES FOR MONTH 


7X3 


TOTAL 


9 / 7 


TOTAL 


syo.h^ 


ACTUAL TIME ON SCHEDULES OF 




STANDARD TIME ^ 


/jZ../ 


BONUS MEN TO TIME OF ALLJUEN 


y^./% 


EFFICIENCY 


7Zi% 


ACTUAL TIME ON SCHEDULES OF. 
BONUS MEN TO THEIR TOTiVL TIME 


?r/% 


INEFFICIENCY DUE TO MEN (/00-Z'6S) 


//.y% 


INEFFICIENCY DUE TO MANAGEMENT {^0.^-77.1.) , 


(73% 


PROPORTION OFMEN EARl^ING 
BOTSXrS TO MEN <S^ BONTJS 


^o.oZ 


TOTAX INEFFICIENCY "i 


^1-? % 


BON-USJ>EIUiIAN 


/.^6' 


ERIN.CIHAL R1;aS0N 

9- .o-n--!^ ^.^ / L/^P..yyi^ToAJyiP7.7y9n 


HIGH ^AJUXq/ //2.. ^ EFFT. J'y3 BONUS 


Lo-\vr nn^'^TioaXajui^ s^,^^^^^' ^o™s. 


^/y 


UCL 


/J-Ui^A, 


1 




* ' The Engineering 1 


Magazine 



Fig. 72. Efficiency Record of Individuals 

The form shown in Fig. 74 is used for analyzing the efficiencies that 
are low, or below normal as shown in Fig. 72. The idea is not to do any 
driving nor forcing of workmen, but to get at the real facts that will 
assist in increasing the efficiency. 

Men should not he forced to attain 100 per cent efficiency. This in a 
sense is up to them. The man is offered an incentive in the form of a 
substantial increase in income if he will take advantage of bettered 
conditions and improved planning. If he cannot, something is wrong. 
If he will not, no amount of force-and-drive tactics are going to make 
him. An efficiency of 75 per cent or 80 per cent can, of course, be ex- 
pected of a worker, and any lower showing should be investigated. 



198 



INTRODUCING EFFICIENCY PRINCIPLES 



EFFICIENCY RECORD 


DEPARTMENTS OlL ^ / ^Juof ^^ ENDING ^/<^- 


DEPTS 


MEN 
ON 

BONUS 


TOTAL 

HOURS 

WORKED 


ACTUAL 

TIME ON 

SCUEDULEe 


STANDARD 
TIME 


EFFICIENCY 


BONUS 


WAGES 


WAGE 
RATE 
PEB. 
HOUIl 


Bonus 
EATE 
PEB 

nouK 


BONUS 

WAGES 
PEB 
UOUB 


TUIS 
PERIOD 


PREVIOUS 
I'EUIOD 


TO Date 


Cu 


/o 


Cos" 





^^/s 


/ 


Vj^ 


/ 


Si 


r 


'^9 


1- 


H 


J' 


/^ 


n 


/l-l. 


s^o 


.h3y 


.03r 


X-^^l 


73 


7-7- 


/-/■oo 





Gys 


3 


^9y 


V 


7? 


u 


^j' 


f 


7b 


J' 


J' 


1-/ 


/3'6 


/9 


:2-^/ 


.oo^ 


.iri^ 


-^ 


VO 


^1.00 





ioo 


o 


7¥o 





92- 


y 


9o 


s 


U' 


•i 


^/ 


xc 


/6o 


"60 


.2-0/ 


03^ 


x^o 


/O 


1/-0 


^foo 





JVOO 


o 


?¥0 


7- 


72 


3 


S/ 


s 


7i 


1 


// 


is- 


2-2-y 


•io 


7^7 


.ooy 


./f^ 


s 


7/^ 


/3oo 





7S0 


o 


^/O 





?/ 


3 


7.9 


3 


U 


i' 


L 


/o 


/^/ 


S'O 


.2/V 


.oo^ 


.2-^1- 


^ 


So 


/S'OO 





Joo 


o 


(oVO 





^? 


r 


n 


6 


93 


/ 


^7 


YO 


/b^ 


ro 


xsy 


.059 


Xl^ 


y 


^0 


/S'OO 





/200 





//vo 





9s 





97 


/ 


^7 


J' 


70 


■LO 


3oi 


'70 


.2.^2. 


.o^i 


3>o 
































































































































(TOTALS 


/^7 


^3os 





^"790 


^ 


J'C'C/ 


S 


7^ 


f 


u 


/ 


7^ 


r 


7^7 


a 


'777 


^f 


.2-2- 


.O-Lf 


^¥9 


RECAPITULATION 


INEFFICIENCY REPORT 


TOTAL HOURS WORKED f J J" 


ACTUAL HOURS J'yfO.i-/- 


HOURS MEN IN DEPTS NOT ON SCHEDULE 4^C / O 


ALLOWANCES (d1-0.^~ 


TOTAL /J" 3 / J~ 


TOTAL i:>^/ 1-. ? 


ACTUAL TIME ON SCHEDULES OF U-X C°/ 
BOJSXrS-MEN TO TDIE OF ALL MEN 7 J' ^ /<? 


STANDARD HOURS S~0 O / . S" 


EFFICIENCY 7 7.9 °/o 


ACTUAL TIME ON SCHEDULES OF / 1. 2. /• 
BONUS MEN TO THEIR TOTAL TIME C7 Z- • /q 


INEFFICIENCY DUE TO MEN (100-80.4) /J. 6 % 


PROPORTION OF MEN EARNLNG n / UL O/ 
BONUS TO MEN ON BONUS / '^ ^ /O 


INEFFICIENCY DUE TO MANAGEMENT (80.4-77.9) ^.yy°/o 


TOTAL INEFFICIENCY 2-7_-/ °/o 


BONUS PER DEPT I' 3 . y ^ 


PRINCIPAL EEASONS 


HIGH 7J 7 670 %> EFFT 7^- .^-^ BONUS 


LOW /O 7f-3%^FFr //.>y BONUS 




rru 


^ 


'^u^n 


JL. 


</'aAju.uiM^ 


The Engi 


^ lO, ^- /o 
iwering Magazine 



Fig. 73. Efficiency Record of Departments 



ANALYSIS OF LOW EFFICIENCIES 


MAN 


DEPT. 


EFFICIENCY 


LENGTH 
OF TIME 
IN BONUS 


REASON FOR LOW EFFICIENCY 


FOREMA? 




NAME 


THIS 
PERIOD 


PREVIOUS 
PERIOD 


TO 
DATE 


TO BE FILLED IN BY DEPT. FOREMAN 


3/L 


Uv^ /ka^yf^-a/'-o. 


a 


51/9 


s/.z 


■y^o 


Smtt^ 


^^^^.y-g-^yft /TTX^tyV-yT-Q y-T^^o^^^ 


-3.:? 


<S/^ 


7iJ> n^iriA/yx 


^ 


6 7,0 


5^<(5 


m,o 


TiJh^ 




<3,7 


sio 


^^iD^^^^y^^ 


c 


P^.o 


7^-0 


7^0 


S/nj^ 


(^F^^^-i^CL.^^Z'^^f^ c^ y^y^^iAAT ^^-yi,o.<J7^7^y.j^ 


Ul 


3^t 


A^iruloca-v^ 


^ 


7/. 6 


7S.0 


^/,0 


iOyuT^ 




Ai^A 


^/O 


li e^yM^ 


^ 


l>9,o 


%o 


77.^ 


Thm^ 


^^^ot^ .o-i^x^^ y^-"^^ ^^ayuti 


kti 


i>7^ 


yUy^^^^irvOiy^ 


^ 


72.0 


?^'o 


^1.0 


5%v^ 


3,-7n^ytyL.^n^(// ck /yrt-iJ^ a.(^ 


f?4 


5 710 


'C^'-i%/vT^ 


74 


i^.o 




— • 


jl/rtck 


^^fVK>^ ^:iy£?^^/^y <f>i /^i-^^n^ 


A 


5'7^ 


/OCWVU/O 


74 


6^.0 


H^ 


SO,b 


3??^cn 




AX 


-^ 


-. . 


_^ 


L^^ 


— .- 


^ 









Fig. 74. Analysis of Low Efficiencies 



The Engineering 3£agaiine 



THE BONUS PLAN OF WAGE PAYMENT 



199 



Certain reasons exist for inefficiency, and there is no excuse for failure 
to ascertain what they are. This all helps the men as well as the 
company. 

Low efficiency is due to one or more of three things: 

(1) The men may make little or no effort to attain the standards; 

(2) The schedules may be unfair; 

(3) The conditions may not be as defined in the standardization. 
If the first is true, then the man has no one to blame but himself 

if he fails to earn bonus. If either or both of the other two are true, 
the work should be restudied carefully and a proper adjustment made. 



MANUFACTURING EFFICIENCY RECORD 


Desckiption of Woek 


Dept. y^ 


Matl. n> 


Std.Time eob _ _ / Men 
Pee._/1^ Pcs.is y?'A__.HRs 


Schedule No. 

Z^3 


Study No. 


Estimate No. 


Drawing No. 


DATE 
MADE 


BY 


PGS. 


ON 
ORDER 


TUIE 


EFFY 


COST 


DATE 
MADE 


BY 


PGS. 


ON 
ORDER 


TIME 


EFFY. 


COST 1 


ACT. 


STD. 


ACT. 


STD. 1 


^J 


3/ S' 


/o 


7^'^0 


3 


y 


^7^ 




6y 




S'6 


























^^f 


3/2^ 


/o 


7^/ ^' 


3 


b 


77 : 


; 


?f 




S% 


























V4 


3>^/ 


30 


7<^^^^ 


s 


/ 


^oj: 


7 / 


77 


/ 


fi 





























































































































































































































































































































































The Engine.erii,.j Magazine 



Fig. 75. Manufacturing Efficiency Record 



We now know the efficiency of departments and men, and to secure 
the facts regarding the efficiency of the work itself the form shown 
in Fig. 75 should be used. In this the cards are filed according to 
parts and operations. 

Men should be encouraged to complain about what seems unfair 
or unreasonable. This makes for a healthy spirit and very often leads 
to considerable in the way of betterment. Rates considered unfair 
should be investigated, and if revision is necessary, it should be made 
as soon as possible, and not kept in force through promises and argu- 
ments. Changes in design, in equipment, or in method of manu- 
facture, call for new studies and new schedules, for the very good 
reason that the basis is different from that previously defined and 
understood. This is not objected to bj^ the men because they are 



£00 



INTRODUCING EFFICIENCY PRINCIPLES 



Vl Vs Vl5 \ 


/22 Vo» ^ 


BONUS 

4 Vl2 Vxo ^ 


PERIODS 

/ 6/ S/ S 


/i. » 


/24 Vsi ^7 Vh V2I ^28 y. 








































§6.00 










































































5 00 






































Q 

O 

1— I 

P3 

H 

f^4.00 

1^ 

W 

PW 














































































































^3.00 








B0> 


JUS A 


T 25 


PERC 


ENT ( 


3F AVERAGE PER Mj 


^N PI 


:r pe 


.RIOD 






































^^ 


^ 


P^ 


























xn 

02.00 

PQ 






























/ 


^ 




N 






















/ 


^ 




^.^ 


k 








1.00 


















/ 




/ 
























> 


^ 


^^ 


*-- 


/ 




















o" 


^^ 


e— 


^ i 




^ 





























2%e Engineering Magazine 



Fig. 76. Average Bonus Earned per Man per Period 

not asked to work any harder, and their wages and bonus earnings 
are in no way decreased. 

Rates should never be cut because the man through skill and effort 
materially increases his earnings. I know of one case where men are 
regularly earning 70 per cent bonus, but the cost of the work has 
been decreased 40 per cent. Why cut this rate? It is a suicidal 
plan and kills the goose which lays the golden egg. High -efficiency 
men encourage the other men. Place no limit on amounts a man should 
earn as bonus. 

The matter of an intelligent and comprehensive control of the 
entire work is most important. To take care of this feature properly 
a number of charts can be used to decided advantage. 

Fig. 76 is a record of the bonus earned per man per period. I was 
once bitterly accused of being too anxious for the men to earn bonus. 
I am. When men earn bonus it means that efficiency, and therefore 
production, is higher than if they were earning no bonus. It is a 
good plan to know what the standard earnings should be, which on 



THE BONUS PLAN OF WAGE PAYMENT 



201 



the chart are shown by a dotted Hne. The actual bonus earnings 
come within 20 cents of the standard in period ending 6/28. The 
chart shows a healthy condition in that bonus earnings per man show 
a steady increase. 

In order to keep in close touch with the progress of bonus men, 
the chart shown in Fig. 77 is suggested. Two things are essential — 



BONUS PERIODS 




The Engineering Magazine 



Fig. 77. Ratio of Bonus Time to Possible Time 



(1) There should be a steady increase in the number of men put 
on bonus. 

. (2) Those on bonus should have as much of their time covered 
by schedules as is possible. 

On the chart the heavy line shows ratio of the time of bonus men 
on schedules to the total time they work, while the dotted line shows 
the ratio of time of bonus men on schedules to the time of all men 
in the department or plant. Take the period ending 5/24 for ex- 
ample; more men were put on bonus, but the time on schedules was 
less than in the previous period. The dotted line for period 5/31 
shows a falling off in the number of men on bonus, although those 



'^■ 



202 



INTRODUCING EFFICIENCY PRINCIPLES 



BONUS PERIODS 

3, 3, 3/ 3, 3. i. i, 4/ i, f>. 6/ 6/ 6. By C. Cy 6 6. Ty 

0(,/l /s ^16 '^2 /29 /& /l2 /l9 Ao ^3 ^10 ^17 /24 ^Sl /? A4 Al As ^6 



¥ 



EFICIENCY OF 



MEN 



75 72 80 77 78 79 81 82 92 85 79 94 93 95 97 96 



60 



94 



93 96 



EFFICIENCY OF MANAGEMENT 

+ 



40 45 70 53 60 62 68 70 74 70 72 78 65 78 80 81 



81 



73 81 



50 



O 



40 



30 



20 



10 




Fig. 78. Inefficiency Chart 



Tfte Engineering Magazine 



who were on worked on them 65 per cent of their time. The heavy 
hne for period 4/26 and 5/3 shows such decided drops as to w^arrant 
rigid investigation. Both hnes, however, show an upward tendency, 
which is, of course, encouraging. 

The "inefficiency chart," Fig. 78, is decidedly necessary. My claim 
is and has been that inefficiency is the element to analyze, for we increase 
efficiency only through eliminating inefficiency. Further, the inefficiency 
of management should be shown as distinct from that of the men. 
If this is not done there can be no true conception of what is at fault 
and who to blame. This is accomplished by adding the allowances 
to the actual hours, after the man efficiency for a department has 
been determined, and dividing the same figure for standard hours 
that was used in figuring the man efficiency, by the increased divisor 
in the form of actual hours. The full line, or man inefficiency, shows 
a constant decrease although in period 5/10 it increased noticeably. 
This increase might be due to putting new men on bonus, or old bonus 
men on new work, or other causes, like cutting a rate or arousing the 



THE BONUS PLAN OF WAGE PAYMENT 



203 



EFFICIENCY IN PERCENT 

111-120 131-140 151-170 171-180 
0-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100 101-110 121-130 141-150 161-170 181-190 




The Engineering Magazine 



Fig. 79. Number of Men at Various Efficiencies 

opposition of the men. From period 4/26 both inefficiency of manage- 
ment and men increased after several periods of decreases. Then comes 
the sudden drop in both for period 5/17. The significant fact in con- 
nection is that following period 5/17 the man inefficiency decreased 
while the inefficiency of the management took two upward spurts. Further 
the lines show that the men are making faster progress in eliminating 
their inefficiency than the management, the moral of which is — "get 
after the management.''' 

Fig. 79 is important in showing the number of men at classified effi- 
ciencies. For the period in question the chart shows that 127 men 
attained efficiencies varying from 71 per cent to 100 per cent, while 
in the previous period only 116 men attained these efficiencies. At 
the same time the general showing for the previous period is better 
than for this period, in that there were less men showing efficiencies 
from 51 per cent to 90 per cent and more men from 91 per cent to 
110 per cent. The value of the chart lies in the ability to concentrate 
attention on the men showing efficiencies of 80 per cent and under. 



204 INTRODUCING EFFICIENCY PRINCIPLES 

and ascertaining what interferes with their attaining greater efBciencies. 
Further, this chart is especially valuable in connection with Fig. 77 
showing relative times. The work of getting more men on schedules, 
keeping those who are thus employed on schedules for the greatest part of 
their time, and getting the men showing one class of efficiency into the 
next higher, can he planned from these two charts. 

An excellent means of keeping the showing before the eyes of all 
department heads is shown in Fig. 80. In this the efficiencies are so 
recorded as to facilitate a quick comparison of all efficiencies. A 
mere glance is all that is required. The showing of "record" and 
"previous record" efficiencies is stimulating. Progress can also be 
gauged by listing "previous-period efficiency" and "efficiency to date." 

To assist further in the work of eliminating inefficiency a sheet 
should be prepared covering the efficiency of the workers for a period 
and posted in a place where it can easily be seen. One is shown in 
the following tabulation: 

EFFICIENCY RECORD SHEET 

Number Name Efficiency 

per cent 



220 


William Jones 


103.7 


182 


John Smith 


101.3 


116 


Thomas Brown 


97.4 


314 


John Williams 


92.7 


412 


Richard Cummins 


87.6 


514 


George Jenkins 


87.1 


212 


Frank Rogers 


81.7 


324 


James Kirk 


76.3 


114 


John Peters 


69.4 


210 


George Olson 


57.3 



A good plan in keeping track of low efficiencies, is to maintain a 
graphic record of men whose averages are below 80 per cent. Such a 
record is shown in Fig. 81. The weekly or period efficiency is some- 
times misleading as the variations may be such as to lead to wrong 
conclusions. A cumulative average is a much better gauge, the graph 
in question showing a downward tendency. 

Before taking up the matter of starting the work, an outline of the 
effect on cost of the bonus curve suggested may prove interesting. 
The following table will clearly show this: 

Standard — 10 pieces per day 
Wage rate 20 cents per hour 



THE BONUS PLAN OF WAGE PAYMENT 



205 



Production 


Efficiency 


Wages 


Bonus 


Cost per 


5 per day 
6 


per cent 
50 
60 


$2.00 
2.00 




piece 
$.40 
.333 


7 


70 


2.00 


$.02 


.288 


8 


80 


2.00 


.10 


.262 


9 


90 


2.00 


.20 


.244 


10 


100 


2.00 


.50 


.250 


11 


110 


2.00 


.70 


.245 


12 


120 


2.00 


.90 


.241 


13 


130 


2.00 


1.10 


.238 


14 


140 


2.00 


1.30 


.235 


15 


150 


2.00 


1.50 


.233 



Increase in earning from 50 per cent efficiency to 150 per cent, 75 per cent. 
Decrease in cost, $.40 to $.233, after paying this increase in earnings, or 40.1 
per cent. 

In closing, a few words regarding the important work of intro- 
ducing the bonus plan is very essential. Men will be suspicious at 
first. Some will refuse to have anything to do with the plan. The 
proposition will be viewed with distrust. A situation such as this calls 



DEPARTMENTAL EFFICIENCY BOARD 



PERIOD - 
MARCH 



DEPT. 


) J 


C 


4 


) 6 


EFFICIENCY 

8 


:( 


10 r 


PREVIOUS 
!0 PERIOD 


EFFICIENCY 
TO DATE 




1 61 1 


1 63 1 


1 
2 
3 

4 










K 








1 84 1 


1 78 1 














1 76 1 


1 80 1 












1 90 1 


1 85 1 


5 
6 

7 












X 






1 89 1 


1 79 1 
















1 70 1 


1 73 1 






PREVIOUS 
KECOED 








1 72 1 


1 81 1 






8 
9 

10 


















1 97 1 


1 94 1 


















1 71 1 


1 76 1 














1 80 1 


1 85 1 


11 
12 

13 










: 










1 76 1 


1 78 1 














1 85 1 


- 1 82 1 
















1 70 1 


1 76 1 


14 
15 
AVERAGE 






1 RECOED 1 












1 102 1 


1 98 1 




















1 90 1 


I 87,1 










1 '^ 










1 81 1 


1 83 1 



Fig. 8o. Departmental Efficiency Board 



T?ie Engineerijig ilagazint 



f^ 



206 



INTRODUCING EFFICIENCY PRINCIPLES 



for the exercise of considerable diplomacy and tact. In the first place 
some notification should be made to the men describing the plan, as 
follows : 

(1) Getting all the men together and addressing them. 

EFFICIENCY PERIODS V'^) Calling a meeting 

"'^^ ^^8 '■^^6 '-^^2 V^o "/o Vi2 ^19 of the best element in the 

shop and carefully explain- 
ing the plan, furnishing 
them with data so that 
they can in turn explain it 
to their fellow workers. 

(3) Inserting in the pay 
envelopes of the men a little 
booklet describing the pro- 
posed methods. How to 
figure the bonus, the matter 
of allowances, and other 
essential points can be con- 
densed to make a four-page 
booklet, which will assist 
materially in getting the 
men to understand the 
methods. 

The men should be made 

The Engineering, Magazine tO fCCl that thcy Wlll haVC 

Fig. 8i. Graphic Efficiency Record ^ ^^^^^ j^^ ^^le matter— that 

no one will be forced to attain 100 per cent efficiency. The fact 
that bonus will be paid for all saved time should be pointed out 
through the following illustration: 

Standard time, 10 hours 

Actual time, 8 

Wage rate 25 cents per hour 



90 r« 

80% 












/ 


\ 






^ 


\^ 




/ 


\ 


70% 


^-^ 


_^y^ — 




V' 


N0.2 


L 


-V- 


\ 






\ 




1 


\ 










NO.l\ 


N 




\ 


60% 












1 




50% 






























40% 


































NO.l 


PERIOD EFFICIENCY LINE 








N0.2 


CUMULATIVE AVERAGE 




30% 
















20% 

10% 

n 






MAN :^ 


ro./o^i^ 


AME/U 


M_\]riM 



















10 hrs. 
Shrs. 



= 125 per cent efficiency 



8 hrs. X 25 cents + 50 per cent bonus = $3.00 ($2.00 in wages and $1.00 in bonus) 

8 hrs. at 25 cents = $2.00 in wages 

$2.00 at 25 per cent bonus, $.50 in bonus 

2 hrs. saved at 25 cents per hr., $.50 in saved time 

Total, $3.00 ($2.00 in wages, 50 cents in bonus and 50 cents in saved time). 



THE BONUS PLAN OF WAGE PAYMENT 207 

They should further be told that day wages will be paid whether 
men earn bonus or not. It will also be well to advise them regarding 
the steps that have been taken by the management in improving 
planning, in standardization of the conditions and operations, all of 
which will enable the men to get some idea of the expense of intro- 
duction, which will assist in enlisting their support. 

If men refuse bonus, as some of them might, place it in the bank 
to their credit. They will take it later. // they dont, their wives will. 

Do not try to put too many men on schedules at first. Do not 
start with the operations which show the smallest possible gains. This 
will discourage the men. They will be won over by object lessons 
more quickly than by anything else, and the reader can imagine the 
influence of a 15-cent bonus to a man for one week's work. 

Let the men kick and grumble at the start, to their hearts' content. 
It furnishes the opportunity to explain and prove the value of the 
plan. One of the most important things is to show them their progress 
from day to day in efficiency and bonus. This will keep up their interest. 
Investigate the complaints carefully, giving the men the benefit of 
the doubt. The medicine looks worse to the men than it really is. 
They must be allowed to sip at it instead of taking it in drinks. 

Do not expect much in the way of results in, the beginning. Some 
men won't even try to make the schedules, feeling that they are beyond 
all reason. Explain to them the method of analysis, and how the 
standards are arrived at. Show them the figures. Prove to them 
that the elimination of false motions and unnecessary work will enable 
them to attain the standards determined upon. This all makes for a 
healthy spirit, and if the work is undertaken properly, you will soon 
find men not on bonus asking for the opportunity to make some extra 
money under the very plan which acting under their misconceptions 
they at first so bitterly opposed. 

If piece rates are found which are altogether too high, the prop- 
osition will prove somewhat complex to begin with. In this case speed 
should be made slowly. The effect of better conditions and planning 
will either result in surprising increases in production or there will be 
a noticeable tendency to hold back on the part of the men, and one by 
one the schedules can be made, and the men will see the justice of 
the change. They may not agree as to the required production as 
standard, but they can be made to see that the rates are excessive 
and need revision. Cutting out all piece rates and putting the men 
on day wages may work out, but not if the men have been earning 25 



208 INTRODUCING EFFICIENCY PRINCIPLES 

per cent to 50 per cent more than day rates. Rates which come closest 
to conforming to the standards should be adjusted first, giving planning 
and conditions a chance to prove to the men the unreasonableness 
of the existing rates. 

Do not for a moment think of ignoring the foremen when considering 
the matter of bonus. The co-operation of the foremen is an absolute 
necessity if the methods undertaken are to prove the success possible. 
In one plant I have in mind, the company decided to pay no bonus 
to the foremen, on the ground that they were receiving good salaries and 
should attend to business and perform their duties efficiently without 
any additional earnings. The foremen resented this, one saying that 
he could not see how the company could expect him to assist the 
workmen in earning from 5 to 20 dollars a month more and give him 
nothing for the extra work necessary to facilitate the workmen. His 
point was well taken. The effect of letting workmen earn good bonus 
and giving the foremen nothing is not a good one. The foreman gets 
discouraged and it may lead the men to wrong conclusions. 

There are a number of factors influencing results which are more 
or less dependent upon the efficiency of the foremen, as follows: 

1. Efficiency of men 

2. Prompt arrival of men 

3. Inefficiency of management 

4. Rejections 

5. Cost of production 

6. Tonnage or units produced 

7. Changes in machines for "forgotten" or rush orders 

8. Absence of workmen 

9. Proportion of men on schedules to men employed 

10. Proportion of time of men on schedules to the time they spend in the plant 

11. Planning 

12. Condition of equipment 

13. Good will of workmen 

14. Facilitating time-study work 

15. Analyzing recbrds of low efficiency men 

Most of these elements can be standardized, reduced to a definite 
schedule of attainment, on the basis of which an incentive can be 
offered to the foremen. The expenditure of $25 to $100 per month 
per foreman, depending upon the task set and the accomplishment, 
will mean savings aggregating thousands of dollars yearly. 

The "legislative" type of management is in working order — 
planning is proving its worth — time studies are uncovering inefficiency 



THE BONUS PLAN OF WAGE PAYMENT 209 

all along the line — conditions and operations are being standardized — 
the men are working under the bonus system. Is anything left to do? 
There are six forces at work in a scheme so practical as to warrant 
the term '' constructive management." Considered separately they 
are result producers, but the greatest attainment can be secured only 
when these six factors are harnessed and welded together and working 
as a single unit. To accomplish this the "Efficiency Clearing House" 
was created, and will be fully described in the next chapter. 



I 



Chapter XVIII 
THE EFFICIENCY CLEARING HOUSE 

Economy does not consist in the reckless reduction of estimates. On the con- 
trary such a course almost necessarily tends to increased expenditures. There can 
be no economy where there is no efficiency. — Disraeli. 

THE above is a most fitting text for this the concluding chapter 
of the series. There can he no economy where there is no 
efficiency. This statement means much to the engineer 
around whom these chapters have been written. He has considered 
organization, co-operation, planning, standardization and incentives, 
in his efforts to increase efficiency. How does he know that it is going 
to he increased ? Where are the ^places where there is no gain in efficiency ? 
These are the questions now confronting the engineer, which must be 
answered before he can call his task finished, if such a task is ever 
completed. 

The Secretary of Commerce, Hon. William C. Redfield, in an address 
at Dayton, said: 

I have with me a report made by an engineer of an American shop to the sales- 
men of the company with which he is allied, showing the improvements in their 
methods of manufacture in the last six months of 1913. The works had been op- 
erated for years with profit, doing well in a competitive business, but the real spirit 
of efficiency had gotten into them and the results were amazing. This process im- 
proved itself to where 28 times more work was done than before. 

In writing to a client, I quoted the above, feeling confident it would 
be met with a feeling of conviction regarding the value of the methods. 
It had about as much effect as water on a duck's back. Why.^ Surely 
an increase of twenty-eight fold would seem large enough to convince 
the most skeptical. It failed to, however, for no other reason than 
an inability on the part of the client to realize the exact situation. 
Refusing to approve the compilation of his pertinent data, he was in no 
position to appreciate the seriousness of a condition perfectly obvious 
to one making a specialty of analyzing industrial ailments. I read 

210 



THE EFFICIENCY CLEARING HOUSE 211 

of a statement made to one concern that $1,000 could be saved per 
day and practically the same thing happened — the executive was not 
convinced. 

To use a slang phrase — what is the answer? Two things seem 
necessary : 

(1) Predetermination 

(2) Analysis. 

Our manufacturing is too much guess work. The chemist mixes a 
definite quantity of this and a definite amount of that, and he has 
what he knew would be the result of the combination of the elements. 
The manufacturer mixes tons of this, feet of that, so many machines, some 
money, men, and knows absolutely nothing about the real outcome as re- 
gards cost and efficiency until the "product is completed. To find out he 
must try out and then look backward, dig into the past, in order to 
gather the loose ends that w^ill give him some idea of where he is at. 
This is chance, rule-of -thumb, gambling of the worst sort. 

The aim of time study, planning, and standardization is to see ahead 
— to unfold the mysteries the future holds — to predetermine. To 
check results properly against this predetermination, analysis of the 
most careful kind is necessary — a work so important as to warrant the 
statement that the success of the entire undertaking is more or less 
dependent upon it. A broad experience conclusively shows me that 
many otherwise excellent betterment campaigns have failed . simply 
because the right kind of analytical work had not been considered in 
conjunction. 

It is not enough, for instance, to tell an executive that he is wasting 
his coal. He may not think so. The statement does not convey any 
real meaning to him. The facts must be put in such form as to make 
a striking impression — to make him see that the dollars are literally 
being pulled out of his pockets. An example of what is meant is taken 
from a recent article on ''Waste in the Furnace": 

•When you turn on the electric light over your desk, the little carbon filament 
gives you just one-half of one per cent of the latent power in the coal burned in your 
basement furnace or the distant power house. 

Ninety-nine and one-half per cent of that power is wasted. It leaks away some- 
where between the coal pile and your incandescent globe. 

Were every bit of the energy in the coal used, when you turned on the little button 
over your desk, 200 lamps would have sprung into light. 

Go to your elevator and pull the starting rope, or into the factory and throw 
the lever that starts the lathe. If your steam plant is the average, only three per 
cent of the energy originally in your coal has got as far as the lathe. 



212 INTRODUCING EFFICIENCY PRINCIPLES 

Where does the other ninety-seven per cent go? Fifty-five is lost in the firebox or 
boiler; forty per cent disappears in the engine; two per cent is used up in transmis- 
sion; a sickly three per cent finally creeps out to drive the machine. 

This is driving a lesson home with the force of a sledge. It means 
something and conveys to the mind a real loss, the essential truths, 
as a bhmt statement without the support of facts could never do. 
This is the kind of analysis the engineer has in mind in connection 
with his work. Of course there are those who say, "I don't believe 
it," no matter how strong the supporting evidence, but this does not 
mean that the right kind of analysis is valueless. There will always 
be skeptics and pessimists. 

The engineer must also be prepared to meet varying opinions in 
the organization about the same subject. These he can only combat 
through analysis. Take belt joints for example. Each of the methods 
used has its supporters and yet the testimony taken from a recent 
article is conclusive: 

The following gives the results of experiments with new leather belting to de- 
termine the strength of different sorts of joints. 

To tear new double leather belt 100 per cent 

To tear the same belt at 5-inch scarfed and cemented splice 90 

To tear the same belt at riveted splice. . 60 

To tear out (patent) spiral steel wire joint with rawhide hinge 42 

To tear out brass-wire lacing 38 

To tear out ordinary rawhide lacing 38 

To tear out brass studs 30 

The cumulative effect of all the work that has been done as out- 
lined in the previous chapters, is to furnish a steady stream of valuable 
data. In other words, the ''by-product" of the efficiency work is 
facts, perhaps of no real value in themselves, but full of possibilities 
if used properly. The engineer is to be a "result chemist," whose work 
is to parallel that of the synthetic chemist, who analyzes in order to 
put together. 

The first consideration should therefore be an outline of the ele- 
ments which in industry are responsible for inefficiency, this serving 
as a basis for determining what to analyze. 

1 — Delays. Regardless of their nature, delays mean a loss of money. They 
interfere with the attainment of the highest efficiency. As most of them can be 
eliminated, study of their causes is worth while. 

2 — Rejections. Rejected work is a waste of the worst kind, the elimination of 
which will mean a greater production, hence the necessity for closely analyzing for 
reasons. 



THE EFFICIENCY CLEARING HOUSE 213 

3 — Changes in Manufacturing. Schedules have to be revised, machines 
broken up because of rush orders, incomplete or delayed designing, rejections or 
other causes. Loss is the result in each case, no matter hew small it may be. We 
will therefore put the searchlight on this feature. 

4 — Idle Equipment Time. The object of every progressive manager is to keep 
his equipment working as continuously as possible. Idle machines mean that the 
share of overhead which would ordinarily be absorbed by them must be borne by 
those that are working. They also mean loss in production. The aim is to find out 
why and what will keep them running. 

5 — Inefficiency of Management. Inefficiency beyond the control of the work- 
men is something that should be closely watched, for so long as it is in evidence 
maximum results are out of the question. 

6 — Inefficiency of Workjvien. What was said with reference to the inefficiency 
of management applies to the workmen as well. 

7 — Changes in Operation or "Task" Schedules. When changes are neces- 
sary in the tasks set before- the men, the real reasons should be investigated in order 
to reduce them if possible to a minimum. 

8 — ^Purchase Failures. Waiting for material purchased is one of the most 
annoying things to contend with and is a much larger factor in manufacturing than 
many have any idea of. It means delayed shipments, rush and hustle, loss of busi- 
ness, night and Sunday work, interference with plans made and numerous extra 
machine changes. Such a form of waste needs looking into. 

9 — ^Delayed Shipments. Failure to ship as promised is always detrimental to 
business success. The reputation for prompt delivery is the desire of every concern. 
The aim is therefore to watch this in an effort to improve the shipping so as to enable 
the concern to retain the good will of the trade. 

10 — Faulty Movement of Material. Managers fail to realize how easy it is 
to waste money in moving material. The loss is greater than usually appreciated. 
To carry material long distances in piecemeal fashion is certainly not efficiency. 
Analysis is the only thing which will discover the loss. 

11 — Poor Arrangement of Equipment. While the desire of every manager is 
to have his equipment placed with reference to most efficient practice, cases are 
many where it is improperly located. The efficiency of each unit may be high, but 
when inter-relation is considered, loss due to faulty arrangement is apparent. This 
is another excellent field for analytical work. 

12 — Complaints. The study and analysis of complaints that can be secured 
from men or foremen will in many cases lead to the uncovering of sore spots which 
can be healed. While many men are unreasonable, the majority do not kick without 
having something to kick about. Where there is smoke there is fire, and analysis 
aims to find the fire. 

13 — Lack of Co-operation. Success in increasing efficiency is largely dependent 
upon securing the full co-operation of men and shop management. If there is an 
absence of this essential, the engineer should know it, and why. 

14 — Faulty Planning. Anything which interferes with the most efficient plan- 
ning will cause loss, confusion, and delays. As these are the very things which the 
engineer must eliminate if his work is to be successful, he will have to find the faults 
preparatory to elimination. 



214 INTRODUCING EFFICIENCY PRINCIPLES 

15 — Congestion at Machines. This often holds a shop back and blocks progress. 
Whether the trouble is lack of equipment or the fault of the shop is something the 
engineer can only ascertain through analysis. 

Look at the ''red tape" you say. Just a minute! Yelling red tape 
is a most excellent excuse, used by the industrial world to get out of 
doing something necessary but distasteful. Let us look at it in this 
way: if these records are compiled and looked over casually, then 
fed to the boilers, you are then justified in pronouncing it all red tape. 
If, however, they can be used to eliminate inefficiency, increase pro- 
duction, and better final results, then it is NOT red tape nor even a near 
approach to it. 

The engineer therefore organizes his "Efficiency Clearing House," 
so as to pass all the data through one place, discard the non-essentials, 
and use the valuable for the betterment of the business. If you will 
bear with me to the end, you will not only be amazed at the possibili- 
ties, but at the failure of so many so-called efficiency campaigns that 
you know about to consider this part of the work. Let us therefore 
take the factors in regular order and determine what can be accom- 
plished. 

Delays 

In compiling data regarding delays, the facts would be secured 
from the " allowance card," shown on page 196, Chapter XVII. On each 
card, the reason for the delay is given. As the cards are turned in 
each day, and after the data contained thereon have been taken care 
of, the cards are to be filed away and at the end of the month sorted 
according to causes, and the cost of the delays compiled as follows: 

Delays — Department A — Month of 

Causes This month Previous month Total to date 

Waiting for jobs 

materials 

drawings 

tools and jigs 

crane 

inspection 
Having belt repaired 

machine repaired 
Grinding tools % 

Incorrect drawings 
Wrong material 
No power 
TOTAL 



THE EFFICIENCY CLEARING HOUSE 



215 



These various items would be totaled for all departments and 
charted as shown in Fig. 82. Before analyzing this chart, it might 
be well to outline the principle of charting adopted. There is no end 
to the amount of charting that can be done in this work. A chart 
could be made for instance, covering each one of the twelve causes, 













DELAYS 












All departments 




Month Dec . 


Cause This mouth Monthly 


Average 


Waiting for jobs ^21.40 ^25.03 


" innate rials 5.70 11.08 


*» .' ' drawings 6.10 5.41 


" tools and jigs 3.20 3.35 


.» »' crane 5.80 13.34 


'f ' •' inspection 2.60 8.78 


Having belt repaired 4.65 7.10 


.. machine " 5.25 6.37 


Grinding tools 15.20 18.80 


Incorrect drawings 3.10 2.08 


Wrong material 2.40 2.91 


No power 3.00 3.08 


Total 79.50 108.33 


Chart covering total of delays 




from month to month | 




J 


F 


M 


A 


M 


J 


J 


A 


S 





N 


D 


300 










































































200 
100 


























/ 


A 


\ 


V 


A 


\ 
























V 


^^ 


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The Engineering Magazine 



Fig. 82. Chart of Delays 

and each one could show current monthly results, previous monthly 
results, and the total to date; but as the engineer is going to cover a 
broad field, refinements would tend only to complicate matters as 
well as hamper him in his work. He wants prompt reports, not ancient 
history. What he wants to know is: 

1. The general tendency 

2. The monthly showing 

3. The monthly average 



1 



21 G INTRODUCING EFFICIENCY PRINCIPLES 

If the general tendency is upward, reference to 2 will show him 
what is responsible, as would also be the case if the tendency was 
downward. The progress can be determined by comparing 3 with 2. 
If the monthly average is $50 and the current monthly showing is 
$20, he knows at once that progress has been made. All charts will 
therefore be made on this general basis. 

Reference to Fig. 82 will show that while the tendency is down- 
ward, the current month's showing is not as good as that of the three 
previous months. At the same time there is no denying the fact that 
betterments are making themselves felt. Delays due to supplying 
material, waiting on crane, waiting for inspection and for repairing 
belts, are much less. The drawing situation is not all it should be; 
delays due to waiting for drawings and incorrect drawings showing 
an increase. As indicated by delays due to the assignment of jobs, 
the showing can only mean that the planning is not as yet performing 
its real function and needs "getting after." There is still too much 
money spent for grinding tools, although some betterment is notice- 
able. The general tendency is excellent, however, considering the 
January, February, March, April and May figures. As shown by the 
charted line, something was wrong in August; but the general showing 
from June to December reflects the efforts to cut out the ''profit 
chokers." Just such a record as this is the very thing necessary to 
show to a skeptical client, who cannot see that any good is being done, 
when there are positive evidences of betterment. 

Just how can such data be used in a practical way.^ Take, for in- 
stance, a foundry making heavy castings. It will be found that inva- 
riably while coring and closing moulds, considerable time is lost by 
the gangs waiting for the cranes. To overcome this a floor can be 
created in charge of one man to make large work that does not need 
crane service. Men waiting for crane (and I have many times noticed 
delays of a half -hour by two and sometimes three men) can be sent to 
this floor to help out until the foreman assigns the crane to a par- 
ticular gang. Naturally, their efficiency would not be as great as if 
they were working on their regular jobs; but it would utilize time that 
would otherwise be wasted — the very aim of this efficiency work. Steps 
can also be taken to better the crane service by offering the crane men 
a bonus based on the showing of the moulders, or the reduction of lost 
time due to crane waits. Analysis might show that additional cranes 
are necessary, perhaps not of the traveling type, but wall or jib 
cranes. 



THE EFFICIENCY CLEARING HOUSE 217 

Another illustration of the value of delay analysis. In a plant 
assembling engines, analysis revealed the following: 

RECAPITULATION OF NINE STUDIES ON ASSEMBLING 

Time units were worked upon 30 . 9 hrs. 

Time units were idle 76 . 4 " 

Total time units on floor 107 . 3 " 



Efficiency — 

Time worked upon 30.9 hours 
Time on floor 107.3 hrs. 



= 28.8 per cent 



Delays hrs. per cent 

No gang, or gang on hand, but idle 17 22 . 2 

Lack of material 33.9 44 . 4 

Waiting for motor 18.7 24 . 5 

Extra reaming, crane, riveting, babbetting, no space to 

work in, and miscellaneous 6.8 8.9 

Total. 76.4 100.0 

Would the lesson pointed out by the above be lost on the shop.^^ 

Rejections 

One of the best fields for converting loss into savings, is the re- 
jections in a plant. Analysis of this feature is made from the "rejec- 
tion card" shown in the preceding chapter. At the end of the month 
they should be sorted by departments, and a report made as to causes, 
patterns or parts, and as to men. The general form would be as follows : 



Pattern 

A 






Men 

A 




r 

Name or No. 


No. 


Man 


Pieces 


Weight 


of pattern 


rejected 


No. 


rejected 




X160 


25 


220 


27 


3425 


R468 


20 


224 


24 


2540 


L145 


20 


227 


20 


1580 


R425 


15 


229 


15 


875 


B1620 


12 


235 


12 


1120 


R416 


9 


242 


10 


650 


\ 




254 


8 


920 






265 


7 


416 






271 


5 


2140 



218 



INTRODUCING EFFICIENCY PRINCIPLES 







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THE EFFICIENCY CLEARING HOUSE 
REJECTIONS IN FOUNDRY. ACCORDING TO CAUSES. MONTH OF . 



219 





Fault of 


Causes 


Men 


Material 


Cores 


Mis. 


Total 




No. 


Wgt. 


Xo. 


Wgt. 


No. 


Wgt. 


No. 


Wgt. 


No. 


Wgt. 


Dirty castings. . 

Slag holes 

Cold shot 

Crush 


3 

2 
37 
10 
24 

1 
11 

2 

4 

1 

1 
2 
1 

1 


392 

85 
2825 
2446 
1032 

470 
,2522 

105 

2075 
140 

40 
645 
425 

153 


32 

52 

6 

2 
5 


3043 

3288 
1400 

563 
195 


17 

1 
1 


1397 

320 
430 


1 

1 

28 

9 

3 


120 
400 
685 

275 
560 


35 

52 

8 

37 

10 

41 

1 

13 

2 

5 

4 

2 

1 

1 

2 

1 

1 

1 

1 

28 

9 
3 


3435 

3288 
1485 
2625 


Fallout 

Blow 

Hit by ladle 

Scabs 

Faulty closing. . 
Shrink 


2446 

2429 

470 

3085 

105 

195 


Broken gates. . . 

Broken cores 

Wrong cores. ... 
Hard ramming. . 

Run out 

Anchor moved . . 
Shook out too 

quick 

Pattern not right 
Crack in casting 
Pattern shifted. 
Faulty machine 

molding 

Broken castings . 


2075 
460 
430 
40 
645 
425 

153 
120 

400 
685 

275 

560 


Total 


100 


13155 


97 


8489 


19 


2147 


142 


2040 


258 


25831 


Per cent 


50.9 


32.8 


8.3 


8.0 


100.0 



The machine shop can be handled in the same manner as was out- 
lined for the foundry. It would be well, however, to show in addition 
the cost of machine-shop or structural-shop rejections in time and 
material. Charts 83 and 84 cover foundry and machine-shop rejections. 

Analysis of rejections as outlined will result in steps being taken 
to reduce the loss in this direction. We not only know what causes 
are responsible, but what pattern or part is causing the greatest loss 
as well as the men who are responsible for the major part of the re- 
jections. A knowledge of all this is but preparatory to betterment. One 



220 



INTRODUCING EFFICIENCY PRINCIPLES 







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THE EFFICIENCY CLEARING HOUSE 221 

plan which can often be used successfully is to offer a bonus to men 
who work on parts where there are operations in sequence, for dis- 
covering bad work in material they receive. A bonus of 2 cents or 5 
cents per piece will cause each worker not only to look for defects, 
but to make them known before the piece is finished and rejected. 

Changes in Planning 

In one plant where planning methods were introduced, 88 per cent 
of the scheduling for one week was followed as planned. Out of the 
planned jobs worked upon, however, four out of every ten were broken 
up for other work, showing that the shop had not planned carefully 
enough at the start. To show that it was not due to lack of work, it 
might be w^ell to state that there was 4.1 weeks of available work 
ahead of the shop. And yet the management felt that no planning was 
necessary. 

In another plant, on one hundred and ten jobs scheduled, forty 
averaged 6.7 hours per operation, while seventy of them averaged 22.2 
minutes per operation. Of the seventy, forty-nine averaged 6 minutes 
per operation. On the basis of the average of 22.2 minutes, it means 
twenty-six changes in a day. IS THIS MANUFACTURING OR 
JOBBING.^ 

In still another plant where the practice was strenuous rather than 
eflicient, rush orders, forgotten orders, pounding to complete a sched- 
uled production, forced repeated changes to enable assembly gangs to 
strip completed units to make deliveries or keep up production, then 
later on, to replace the parts removed. On eighty units analyzed to de- 
termine what would have to be replaced, the following was found: 

PARTS NEEDED TO COMPLETE UNITS PREVIOUSLY FINISHED 



Pieces 


Parts 


54 


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9 


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222 



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THE EFFICIENCY CLEARING HOUSE 223 

This makes a total of 537 parts on which work had to be performed 
twice, plus the labor of taking the parts off in the first place, an average 
of 6.7 parts to the unit. What would the progressive manager call this? 

The real trouble is that managers, both shop and executive, have 
no real conception of the pernicious influence of changes on results, 
because with no planning methods it has been next to impossible to 
compile data as to changes. It is, of course, to be expected that some 
changes will have to be made, but the kind of analysis that is outlined 
here will show time and time again that many of them are without 
the slightest justification. 

As was explained in Chapter XIII, on planning, a ''Memo of 
Change in Schedule" is necessary before a change can be made. On 
this there is a place for placing the result of an investigation into 
causes. It is these which are analyzed monthly. Reports would be 
made up along the lines indicated, for delays and rejections, and a 
chart made as shown in Fig. 85. 

Idle-Equipment Time 

In one plant considerable idle-equipment time was in evidence. 
Analysis revealed the fact that transmission troubles were causing 
many stops in the machines. Here are the findings: 

Main shaft in engine room, 3^ inch out of line and 3^ inch out of level. 

Pulley on above shaft 1 inch out of center with engine pulley. 

To get lights, plant had to shut down to put on dynamo belt. 

Main shaft in machine shop % inch out of line and }/2 inch out of level. 

Countershaft for machine — , 1}/^ inches out of line. 

Countershaft for carpenter shop, % inch out of line. 

Countershaft for machine — , ^ inch out of line. 

Countershaft for machines — and — , \}/2 inches out of line. 

Countershaft for machines — and — , 33^2 inches out of line. 

Countershaft for machine — , 4 inches out of line. 

Countershaft for machine — , }/2 inch out of line. 

Machine — , 1 inch out of line and 1 inch out of level. 



Machine - 
Machine - 
Machine — 
Machine — 
Machine — 



% inch out of line. 
2 inches out of line. 
1 inch out of line. 
134 inches out of line. 
}/^ inch out of line. 



In order to keep track of this feature, the ''Service Card," shown 
in Chapter XIII, should be taken daily and entered on a record as 
shown at the head of page 225. See Fig. 86. 



2U 



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THE EFFICIENCY CLEARIXG HOUSE 225 

IDLE MACHINE TIME 

Department A. Month of Possible running hours, 250 

Machine Hours per day Total Effy. 

per cent 

101 4-6-3-5-9-10-2-0-0-4-3-5-6-2-4-6-6-3-8-10-1-0-0-0-0 97 38.8 

102 3-5-7-8-10-10-10-12-14-10-10-8-7-4-8-7-6-7-9-9-10-10-10-10-0 204 81.6 

140 6-5-0-0-10-12-12-2-1-24-0-0-0-0-0-0-4-7-2-1-7-6-4-3 106 42.4 

Total 6,600 66.0 

^ Actual hours, 40 machines, 6,600 

— — — = 66.0 per cent. 

btandard hours, 10,000 hours 

Idle time 3,400 hours 

Note — Machines 103 to 139 not shown on account of lack of space. 

To cover this the chart would be drawn up as shown in Fig. 86. 

IXEFFICIENCY OF MANAGEMENT 

As was shown in the preceding chapter, the efficiency of manage- 
ment is found by adding the time shown by allowances, to the actual 
time as shown by men on schedules, dividing this increased total by 
the standard time, as follows: 

Actual Standard EflBciency 

Men 2,500 hrs. 2,000 hrs. 80 per cent 

Allowances 200 " . . . . 74 

Total 2,700 " 2,000 " 

Inefficiency of men 100 — 80 = 20 per cent. 
Inefficiency of management, 80 — 74 =6 per cent. 

Charting to cover this would be as shown in Fig. 87. 

Inefficiency of Men 
From the previous illustration it was observed that the inefficiency 
of the men was 20 per cent, the wasted time being 500 hours. In this 
case, however, it is impossible to determine the reasons for inefficiency, 
so that all we can do is to chart the per cent line and a line showing the 
lost hours. See Fig. 88. 

Changes in Operation Schedules 
In the sixteenth chapter, on'* Standardization of Operations, "a requi- 
sition was shown for changing operation schedules. These should be 
taken at the end of the month, a report made, and the results charted 
as outlined in Fig. 89. 



226 



INTRODUCING EFFICIENCY PRINCIPLES 







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the efficiency clearing house 227 

Purchase Failures 
In the twelfth chapter, on planning, a purchase schedule was 
shown, which will show the number of days a receipt is behind that 
promised or wanted. At the end of the month, these sheets should 
be taken and a record made as follows: 

DELAYED MATERIAL RECEIPTS 

Department A. Month 

Days behind delivery Number of such 

promised delays 

20 4 

15 10 

12 6 

10 3 

8 2 

. 6 12 

4 17 

Total 77 75 

Average ..9.9 

This means that there were seventy-five receipts which averaged 
10 days behind anticipated requirements. As it is extremely difficult 
to ascertain reasons for such delays, all that can be done is to show 
the tendency as indicated by Fig. 90. 

Delayed Shipments 

The order control sheets as shown in the thirteenth chapter on 
planning give the number of days the real completion or shipment is 
behind completion or shipment wanted. These data can be com- 
piled in the same manner as was outlined for purchase failures, thus: 

DELAYED SHIPMENTS 

Month of Department A 

Days behind delivery Number of such 

promised delays 

30 1 

20 2 

18 4 

16 7 

10 12 

7 12 

5 20 

3 27 

Total 109 85 

Average ....12.8 



228 



INTRODUCING EFFICIENCY PRINCIPLES 



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THE EFFICIENCY CLEARING HOUSE 229 

This means that there were eighty-five dehveries which averaged 
12.8 days behind schedule. See Fig. 91. 

Faulty Planning 

I was once told by the superintendent of a plant that the method 
of using service cards was "mighty red-tapey." I asked why? He 
answered that on the day previous the operator of a machine had 
used 40 tickets. He was highly indignant and hoped the whole thing 
would be pitched out the back door along with the entire efficiency 
outfit. We took the matter up with the general manager, who very 
wisely replied that the fault was not in the service cards hut in the manage- 
ment of the shop which permitted a condition to exist necessitating 40 
changes a day in a machine. He hit the nail squarely on the head. 

At the end of the month, service cards should be sorted according 
to machines or operations. Those having a reasonable number of 
cards need not be considered. A report covering the balance can be 
made out as follows: 



MACHINE CHANGES 






Department A. Month of. . 








Machines 


Average daily 


Total 






changes 


changes 


106 




24 


24 


107 




20 


20 


108-140 




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48 


134 




10 


10 


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48 


124-125 




5 


10 


Total 17 






190 



Average changes above 5, per machine per day, 11.1. 
These data can be charted as shown in Fig. 92. 

Congestion 
It is just as important to watch congestion at machines, as it is to 
consider idle machine time. In one plant 15,000 parts were to be fur- 
nished in two years, under penalty. It was found, because the work 
to be done was charged in advance to the machines that would have 
to make the work, that 2,400 could be made in a year, or 4,800 in the 
two years, which would be but 32 per cent of the order. A day after the 
work was started, the facts were made known to the manager, who 
stated that if the methods did nothing else but bring just such matters 



230 



INTRODUCING EFFICIENCY PRINCIPLES 











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THE EFFICIENCY CLEARING HOUSE 



231 



to his attention, he would consider the money paid for the work well 
spent. More equipment and subletting part of the order was the 
solution, and the work was turned out in time. In compiling the data 
covering congestion, go through the planning sheets for the last day of 
each week and average the times ahead of machines showing 60 hours 
or more against them. The chart would be made as shown in Fig. 93. 

Co-operation 
The "Efficiency Recommendations" obtained as shown in Fig. 1 
serve two purposes — to test for co-operation, and to secure valuable 
suggestions. Naturally, if few are turned in it means that the mem- 
bers of the organization are either opposed to the work and do not intend 
to assist, or are afraid that someone else will use, as theirs, the sugges- 
tions that would be offered. The facts should be compiled as follows: 

RECOMMENDATIONS 

Department A. Month of 

Nature Received Accepted Rejected 

Design 2 1 1 

Method of manufacture 4 3 1 

Equipment 10 4 6 

Systems 8 5 3 

Conditions 12 5 7 

Total 36 18 18 

A record of this kind will show what departments are failing to 
co-operate. It will also show the way the organization is thinking and 
what it has in mind. It will indicate the weakest factors, for men 
think most about that which causes them the most inconvenience and 
trouble. The facts can be charted as shown in Fig. 94. 

Faulty Moving of Material 

The "move orders" described in Chapter XIV, on planning, should 
be taken monthly, sorted according to order, and compiled thus: 

MOVEMENT OF MATERIAL 

Department A. Month of 

Pieces to order Moves Pieces per move 

100 7 14.2 

50 5 10.0 

250 14 17.8 

100 4 25.0 

100 12^ 8.3 

600 42 14.3 

Chart 95 will show the method of graphically indicating the tendency. 



232 introducing efficiency principles 

Inefficient Arrangement of Equipment 
This cannot be charted, but it is possible to analyze this important 
feature in a thorough manner. Take a set of move orders, or the rout- 
ing card (if it is employed) covering an order, and placing a sheet of 
tissue paper over the floor plans showing machine layout, trace the 
movement of material from operation to operation. Unless the ma- 
chines are properly located, this method will show up the inefficiency 
due to poor location. 

Complaints 
Every complaint made by a foreman or a worker should be re- 
ported to the chief of staff and recorded by him. Every member of 
the staff should encourage all about them to complain about the diffi- 
cult, the unjust, or the unreasonable, as this assists mightily in re- 
vealing places where attention should be concentrated. A report of this 
nature would not of course be complete, as some would be afraid to 
complain while others would not consider it their business to say any- 
thing about what does not seem right. Kickers there would be, but it 
would not take long to catalogue them as such and take what they say 
with a grain of salt. As w^e are anxious to know the general tendency, 
a record of complaints would be valuable. A statement could be 
made out as follows: 

COMPLAINTS 

Department A. Month of 

Causes No. 

Schedules considered unfair 5 

Conditions interfere with results . 4 

Methods looked upon as red tape 5 

Wages not sufficient 10 

Too much driving for results 7 

Hours too long 4 

Men forced to do things for which they were not hired 2 

Betterment work looked upon as a reflection of ability 4 

Too much work to carry on methods 7 

Total 48^ 

All bosh, you say, this listening to complaints. Let me cite cases 
that will show that it is a wise plan to listen to complaints, which after 
all are suggestions of a reversed nature. In a coal mine, the practice when 
a man quit without cleaning out the rock after mining coal, was to have 
the new man hired and assigned to the room, blast it down, break it 
up and remove it before beginning to mine coal. The vein of coal 



THE EFFICIENCY CLEARING HOUSE 233 

being about 24 inches thick, necessitated removing 36 inches of rock, 
which was not paid for, as in the mine the price covered the coal mined, 
including the removal of rock. The unfairness is apparent. Miners 
who had to work hours for nothing were indignant, for they considered 
they were in no way to blame because the men before them purposely 
left the rooms without the rock taken out. Naturally they kicked and 
kicked hard. The practice was changed. 

In a small town in which several hundred workmen were employed 
and where there was a saloon, the men would walk over a mile after 
supper to a neighboring town where there was a moving-picture house 
in addition to several saloons, the former being the added attraction. 
They would take in the "movies," meet old friends, take in the saloons 
one at a time, carouse for several hours, and then go home very much 
the worse for wear. Many of them would fail to report for work in the 
morning, or if they did report, they would be in no condition to do a fair 
day's work. Some of the better element complained, and as a result 
the installation of a moving-picture house was recommended, which 
would mean that the men would take their families to the show, send 
them home when it was over, go to the saloon, have a few drinks, and 
go home, reporting in the morning in better condition physically than 
under the old arrangement. 

Men operating wet stones complained because of the water keeping 
their hands cold in the winter. The matter was taken up with the 
company and it was agreed to heat the water so as to make it more 
comfortable for the men. A complaint chart is shown in Fig. 96. 

Focusing the Analysis Work 

Morris Llewellyn Cooke, director of public works, Philadelphia, said: 

Scientific management is not something that can be bought in a box. It is not 
something in the nature of a drug that one takes and feels better. It is not a card 
index. It is dependent upon no single mechanism. Nor is it a combination of any 
number of mechanisms. It is not a system of keeping costs, nor is it a method of 
paying wages. 

What then is this thing that has caused so much discussion in the 
industrial world .^ It is the search all along the line that reveals con- 
ditions which do not conform to definite law and principle, and having 
found them makes them conform to what is right. The aim of the 
preceding chapters has been to define and outline what will search 
out and correct the weak places. The aim of this chapter is to see that 
law is obeyed. 



234 INTRODUCING EFFICIENCY PRINCIPLES 

Therefore, for his own protection, and I say this advisedly, the 
engineer must carefully consider such matters as have been here out- 
lined, or he is likely to have his task of increasing plant efficiency 
prove a top-heavy load. One unfortunate feature about this efficiency 
work is that very often a concern engages, at a high fee, an engineer, 
who has had a long experience and who is both competent and success- 
ful, and just as soon as he begins his work, the client says what he 
wants or doesn't want. The engineer's recommendations are brushed 
aside as if they were of no account, and he often has to give way to a 
man in the organization whose knowledge of the work is in inverse 
proportion to his activities and talk in connection therewith. Then 
again there are clients who balk and hesitate so over minor things, 
that are considered as tests, as to make it obvious that they are totally 
unprepared to consider the larger and more comprehensive features. 
What can the engineer do.^ Get out as soon as he possibly can, the 
same as the lawyer who when dictated to as regards how to try a 
case, withdraws rather than lose it through the interference of the 
layman. I have little sympathy for concerns who say they have 
"tried" this thing and that there is nothing in it, when investiga- 
tion would show that the trouble was due to the inability of the 
engineer to carry on one-quarter of what he knew should have 
been done. 

When a concern after engaging an engineer is unwilling to announce 
to his shop workers what it is desirous of doing — is opposed to a class 
of shop foremen being organized to consider efficiency methods — is 
not in sympathy with bonus — is opposed to planning because it looks 
like a lot of red tape — is opposed to a belt department — is unwill- 
ing to delegate authority — is opposed to service cards — is unwilling 
to consider burden and equipment time saved as a gauge of results — 
is unwilling to have costs compiled — is opposed to spending much on a 
tool room, and considers power the cheapest thing about the place 
— what possible argument can be advanced for asking the engineer, 
who has neither status nor authority, to get something substantial 
under way.^ The sooner he leaves, the better for all concerned. 

It only goes to prove that manufacturing is too much guess work, 
as was stated in the beginning. It is hard to convince executives that 
law and principle can be made to operate successfully. As a manu- 
facturer recently wrote me: 

We think what we really need more than anything else is a foreman who can 
produce results, and we are now trying out a man who thinks he can do this. 



THE EFFICIENCY CLEARING HOUSE 



235 



In other words the manufacturer doesn't know what he needs to 
secure results, so he proposes to "try" a man who in turn doesn't 
know that he can secure results. The phrase is the most eloquent 
summing up of the conditions existing in many of our manufacturing 
concerns that I have ever seen. 



GENERAL RESULTS 



All departments 
Item 



Efficiency 

Production 
(in units) 

Cost per unit 



Month Dec. 



This 
Month 

90% 
20.000 

$35 



Monthly- 
Average 

16.800 

$50 



Chart showing general resume 
of results 




Note-No value shown for production line. 

Used to compare with cost and ef fy. lines 



Xhe Engineering Magazine 



Fig. 97. 



Chart of General Results — Production, 
Cost, and Efficiency 



So, after a long experience with just such trials as I have outlined, 
let me advise the engineer for his protection and the protection of the 
client (who after all is hardly to blame because he is not familiar with 
the aims, ideals and devices), to analyze from the start and feed the 
facts to the executives so as to guard against leaving with a letter which 
will ''damn with faint upraise J ^ 

The charts shown, along with the others which would naturally 



236 INTRODUCING EFFICIENCY PRINCIPLES 

suggest themselves to the engineer, should be placed together in a 
compact space, like a Babson desk sheet. Cost facts, production data, 
burden, can be charted. The charts shown in the previous chapter 
can also be added. Make a frame that will hold all the charts, each 
of which should not exceed 5 by 8 inches in size. Arrange them to- 
gether in consistent order, in this way materially increasing the value 
of each chart. For instance, the chart on delayed shipments and the 
one on delays are very closely related. The one on purchase failures 
and the one on planning changes can be wisely considered in conjunc- 
tion. Cost charts and the charts on inefficiency of men and manage- 
ment are worth considering together. A chart covering production 
compared with one showing the burden will show the trend of the 
business. With these two place the chart showing monthly efficiency. 
If the executive will not consent to having a duplicate set under a 
plate glass on his desk — the very best possible way for keeping them 
for reference and study — make a monthly abstract with conclusions 
and submit to the management. 

Further, remember to do two things, from beginning to end — 

1. Keep a diary showing daily all the essential things that happen. 
A thing may not seem important at the time but it might easily assume 
proportions later on, when some obstacle is met with relating to the very 
point that was jotted down. 

2. Put everything in writing, all the time. Verbal discussions are 
questionable, for the memory is a most excellent "forgettery." 

Conclusion 

It is hoped that what has been said in this and previous chapters 
will convince executives that there is, after all, something of real and 
substantial value in this efficiency work. A writer recently said: 

As our industries are organized to-day, not one establishment in ten can have 
scientific management, because not one in ten is wiUing to five by its law. 

If this is true, then the executives of our industries are to blame. 
Whether or not the work is to be the success possible; whether or not 
our industrialism is to be the most efficient on earth — is simply a ques- 
tion of the co-operation of executives and managers. The engineer 
has been and is doing his share. His work is exceedingly trying, calls 
for considerable travel, and demands much in the way of personal 
sacrifice. He is constantly forced to battle with trying situations 
back of which are skepticism and doubt. Certainly opposition will 



THE EFFICIENCY CLEARING HOUSE 237 

not make his task any easier. That he will win there is no question, 
for the history of every movement shows that the things which are now 
successful were forced to withstand bitter criticism and repeated fail- 
ures, some having to fight for their very existence. The sewing ma- 
chine, the cotton gin, the telephone, the introduction of machinery 
are examples. 

Because w^e are quitters; because we are skeptical of anything new; 
because in America there is too much *'each for himself" — the progress 
of the work to date is not all it should be. Industry and the com- 
munity at large are the real losers — not the engineers and those who 
advocate what has been described in these pages. As our industries 
simply must and will become more efficient before we can get away from 
the vicious cycle of higher costs and increased prices, it behooves industrial 
managers to cease condemning on general principles and to make a real 
and consistent attempt to find the meat that will prove to be the best hind 
of industrial nourishment. 

A few words to the executive therefore seem fitting in closing. In 
a small w^ay, begin the introduction of some of the methods described. 
Put one of your own men or a good man from the outside in charge of 
the work. Seek such advice as will make what you undertake success- 
ful. Make the organization understand from the start that what is 
going to be introduced is not on trial, but part of a determined and 
consistent attempt to bring about greater eflficiency. It is sincerely 
hoped that what has been said will enable you to better understand the 
ideals and aims of the methods advocated, as well as the measure of 
the men you must look to in the performance of the work — serving in 
addition to assist you in avoiding some of the pitfalls. Here's to your 
success! 



238 



INTRODUCING EFFICIENCY PRINCIPLES 



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Chapter XIX 
MANUFACTURING COSTS 

IN the graphic outhne of manufacturing practice (Fig. 5, Chapter 
VII), efficiency practice and accounting practice were considered 
as ante-mortem and post-mortem processes, their functions being: 

Efficiency practice, to outhne standard practice; 

Accounting practice, to criticize actual practice. 

In order therefore to make this presentation as comprehensive as 
possible, it seems proper to add a supplementary chapter on manu- 
facturing costs so as to enable the executive to cover the entire field 
if he feels so disposed. The outline of accounting practice is not of 
course universally applicable, but it will furnish such practical facts 
in connection with costing as to enable a manager to devise the kind 
of cost methods that will check his efficiency results and in addition 
furnish him excellent cost data. 

The chart shown in Fig. 98 outlines fully the accounting that will 
be described. In case the reader desires more explanatory informa- 
tion, the author w411 gladly supply it. If the reader wants a more 
scientific method of cost-keeping, a careful study of ''Production 
Factors," by A. Hamilton Church, will be found of pronounced value. 

The discussion will be considered under the following headings: 

(1) Manufacturing Expense 

(2) Commercial Expense 

(3) Sales and Stock Orders 

(4) Production and Sales Accounting 

Manufacturing Expense 
Controlling Accounts 

The controlling accounts making up the manufacturing expenses are as follows: — 

Maintenance of Plant account 1100 

Indirect Labor account 1200 

Supplies used in Plant account 1300 

Errors account 1400 

£39 



240 INTRODUCING EFFICIENCY PRINCIPLES 

Handling Materials account 1500 

Shop Supervision account 1600 

Power account 1700 

Departmental Expense account 1800 

Shop General Expense account 1900 

Departments 

The same numbers are to apply to all departments; the following letters are to be 
used in identifying the department chargeable with an item of expense: 

Machine Shop ' . . .M 

Boiler Shop B 

Smithy S 

Foundry F 

Pattern Shop P 

Carpenter Shop C 

Warehouse W 

Yard Y 

Engineering Department E 

Office O 

Maintenance of Plant — ^Account 1100 

Account 1101 — Maintenance of Real Estate and Buildings 
Charge with labor and material expended to maintain: 
Tracks 
Sewers 
Paving 
Sidewalks 
Shop Buildings 
Office Buildings 
Air Lines 
Gas Lines 
Water Lines 

Account 1102 — Maintenance of General Equipment 

Charge with labor and material expended to maintain the general equipment. 

Account 1103 — Maintenance of Power, Heat and Light Machinery 

Charge with labor and material expended to maintain the equipment of 
machinery classified under above heading. 

Account 1104 — Maintenance of Transmission Machinery 

Charge with labor and material expended to maintain equipment of: 
Bearings 
Hangers 
Shafting 
Pulleys 
Boxes 

Belt Shifters 
Belting 



MANUFACTURING COSTS £41 

Account 1105 — Maintenance of Hoisting Machinery 

Charge with labor and material expended to maintain the equipment of 
machinery classified under above heading. 

Account 1106— Maintenance of Hydraulic Machinery 

Charge with labor and material expended to maintain the equipment of 
hydraulic machinery. 

Account 1107 — Maintenance of Pneumatic Machinery 

Charge with labor and material expended to maintain equipment of pneu- 
matic machinery. 

Account 1108 — Maintenance of Furnace Equipment 

Labor and material expended to maintain equipment of furnaces. 

Account 1109 — Maintenance of Lights and Wires 

Labor and material expended to maintain equipment of: 

Incandescent Lamps 

Arc Lamps 

Globes 

Cord and Guards 

Fuse 

Fuse Blocks 

Sockets 

Account 1110 — Maintenance of Machine Tools 

Labor and material expended to maintain equipment of machine tools. 

Account 1111 — ^Maintenance of Small-Tool Equipment 

Labor and material expended to maintain equipment of small tools. 

Account 1112 — Making Small Tools 

Labor and material expended in making new small tools, jigs, fixtures, templets, 
etc. 

Account 1113 — Maintenance Stable Equipment 

Labor and material expended to maintain equipment of: 
Horses 
Wagons 
Harness 
Barn 

Account 1114 — Maintenance of Flasks 

Labor and material expended in maintaining equipment of: 
Iron and Wood Flasks 
Making New Wood Flasks 

Account 1115 — Maintenance of Patterns 

This account made up of the transfers from accounts 2412-2413. 



242 INTRODUCING EFFICIENCY PRINCIPLES 

Indirect Labor — Account 1200 

Account 1201 — Riggers and Crane Men 

Charge with wages paid to those who operate cranes about plant (excepting 
locomotive crane operator) also wages paid to those who work with crane men. 

Account 1202 — Foundry Cleaning-Room Labor 

Charge with wages of men cleaning, grinding, rattling and chipping castings 
in foundry 

Account 1203 — Foundry Cupola Labor 
Charge with time of men : 

Getting material from yard to charging platform. 

Breaking stock. 

Weighing charges. 

Charging and tending cupola. 

Cleaning and daubing ladles. 

Preparing cupola for each day's heat. 

Account 1204 — Cutting Sand and Pouring Off in Foundry 

Charge with time of men in foundry cutting sand in the morning and pouring 
off at night. 

Account 1205 — Night Gang in Foundry 

Charge with time of men removing castings, flasks, clamps, etc., wetting 
down floors and getting same in condition for use by moulders. 

Account 1206 — Truckers 

Charge with time of men trucking work around shops, from department to 
department, etc. 

Account 1207 — Miscellaneous Indirect Labor 

Charge with time of men whose work is of a general character which cannot 
be charged to any other account. 

Supplies — ^Account 1300 

Charge with materials drawn from Stores for general use in various depart- 
ments. 

Errors — ^Account 1400 

Account 1401 — Defective Material — Purchased 

Charge with purchased material rejected because of defects in the material. 

(a) Value of Material — 

Charge back to vendor, credit proper department. 

(b) Value of labor if any — 
Charge account 1909. 

Account 1402 — Defective Material — Foundry 

Charge with material purchased from our own foundry rejected because of 
defects in material. 



MANUFACTURING COSTS 243 

(a) Value of material: 

1. Charge scrap account with scrap value. 

2. Charge account 1402 with difference between value of scrap and price 
allowed foundry. Credit proper department with price allowed foundry. 

(b) Value of labor, if any — 
Charge account 1909. 

Account 1403 — Gas-Engine Department Errors 

Charge with value of labor and material expended on work rejected because 
of errors in the gas engine department. 

Account 1404 — Structural-Department Errors 

Charge with value of labor and material expended on work rejected because 
of errors in the structural department. 

Account 1405 — Pattern-Shop Errors 

Charge with value oi labor and material expended on work rejected because 
of errors in pattern shop. 

Account 1406 — Machine-Shop Errors 

Charge with value of labor and material expended on work rejected because 
of errors in ruachine shop. 

Account 1407 — Boiler-Shop Errors 

Charge with value of labor and material expended on work rejected because 
of errors in boiler shop. 

Account 1408 — Smithy Errors 

Charge with value of labor and material expended on work rejected because 
of errors in smithy. 

Account 1410 — ^Replacing Defectives in Foundry 

Charge with labor in foundry or core room replacing lost or extra work done 
on account of causes other than faulty design or construction of pattern. 

Account 1411 — Material Broken by Yard 
Charge with material broken by yard gang. 

Account 1412 — ^Material Broken by Shops 

Charge proper department with material broken by shops. 

Handling Materials — ^Account 1500 

Account 1501 — ^Wages Locomotive Crane Operator 
Charge with wages paid to locomotive crane operator. 

Account 1502 — Locomotive Crane Fuel and Supplies 

Charge with fuels used by crane; also any supplies, such as waste, oils, etc.. 

Account 1503 — ^Wages of Teamsters 
Charge with wages paid to teamsters. 



244 INTRODUCING EFFICIENCY PRINCIPLES 

Account 1504 — Team Supplies and Expense 

Charge with feed, hay, straw, bran, corn, etc.; grease used on wagons or har- 
ness; tools, including shovels, forks, jacks, brushes, brooms, dusters, oil for lighting 
and any other expense not classified above. 

Account 1505 — Yard Supervision 

Charge with wages paid to one in charge of yard gang. 

Account 1506 — Unloading Materials by Yard 

Charge with expense of unloading materials received. 

Account 1507 — Handling Materials by Yard 

Charge with expense of handling materials in shops, taking material from one 
department to another, etc. 

Account 1508 — ^Loading Materials 

Charge with expense of loading materials for shipment. 

Account 1509 — Cleaning up and Removing Refuse 

Charge with expense of cleaning up around plant and removing refuse. 

Account 1510 — Repairs to Yard Tools 

Charge with labor and material expended to keep yard tools in repair. 

Account 1511 — Supplies 

Charge with supplies used by yard gang such as hooks, small chains, hammers, 
sledges, shovels, picks, forks, pails, brooms, etc. 

Account 1512 — Miscellaneous Yard Work About Plant 

Charge with yard work of a miscellaneous character which cannot be charged 
to some other account. 

Shop Supervision — Account 1600 j 

Charge with salaries paid to superintendent, foremen, and assistant foremen. 
Also amounts paid to shop clerks. 

Power — ^Account 1700 

Account 1701 — Engineers 

Charge with wages paid to engineers about plant. 

Account 1702 — Gas 

Charge with invoices for gas. 

Account 1703 — Electricity 

Charge with invoices for electricity. 

Account 1704 — Oiling All Shafting 

Charge with time spent in oiling the shafting about plant. 

Account 1705 — Supplies 

Charge with supplies such as oils, waste, oilers, paint, etc. 



MANUFACTURING COSTS 245 

Departmental — Account 1800 

Account 1801 — Engineering Department 
Charge 1801 G with balance from 2300 G. 
Charge 1801 S with balance from 2300 S. 

Account 1802 — Pattern Shop 

Charge with balance from account 2400. 

Account 1803 — Cost and Time 

Charge with amounts paid to timekeepers and cost-department clerical force. 

Account 1804 — Warehouse 

Charge with labor and supervision in warehouse; the supplies used by the 
warehouse; the taking of inventories, etc. 

Account 1805 — Purchasing and Order 

Charge with expense of operating purchasing and order departments. 

Account 1806 — Shipping and Inspection 

Charge with amounts paid to shipping clerk and shop inspectors; also any 
shipping expense which cannot be charged direct to an order or account. 

Shop General — Account 1900 
Account 1901 — Experimental 

Charge with labor and material expended by all departments because of ex- 
periments made by shops or Engineering Department. 

Account 1902 — Changes and Improvements in Designs 

Charge with Engineering Department or Pattern Shop expense incurred 
because of changes or improvements made to correct a fault or better the 
product. 

Account 1903 — Depreciations 

Charge with all depreciations to plant and equipment. 

Account 1904 — Taxes 
Charge with taxes. 

Account 1905 — ^Insurance 
Charge with insurance. 

Account 1906 — Water 

Charge with invoices rendered for water rent. 

Account 1907 — ^Replacing Patterns Broken or Lost by Foundry 
Charge with amount* of account 2410. 

Account 1908 — Foundry Rigging 

Charge with expense which facilitates the work in the foundry, such as labor 
and material making chills, core shells, anchors, lifting plates, loom plates and rings, 
matches, regating patterns, fitting patterns for machine moulding, etc. 



V 



246 INTRODUCING EFFICIENCY PRINCIPLES 

Account 1909 — Miscellaneous Shop General 

Charge with expense of a miscellaneous character which cannot be charged 
direct to some other account. 

tr 

Commercial Expenses 
Controlling Accounts 

The controlling accounts making up the commercial expenses are as follows: 

Administrative Expenses account 2100 

Selling Expenses account 2200 

Administrative Expenses — ^Account 2100 
Account 2101 — Executive Salaries 

Charge with salaries paid to the officers of the corporation. 

Account 2102 — Office Salaries 

Charge with salaries paid to bookkeepers, stenographers and oflBce boys. 

Account 2103 — Interest 
Charge with: 

a. Interest on bond issue. 
6. Interest and discount. 

Account 2104 — Suspense 

Account 2105 — ^Telegrams and Telephone 

Account 2106 — Legal 

Account 2107 — Donations and Dues 

Charge with gifts to charitable institutions and for other purposes — associa- 
tion charges, dues, etc. 

Account 2108 — Stationery and Postage 

Charge with all printed matter excepting advertising; also postage, postal 
cards, stamped envelopes, etc. 

Account 2109 — Office Expense 

Charge with supplies such as pencils, pen holders, pens, erasers, pins, rubber 
bands, blotting paper, pads, waste baskets, carbon paper, clips, inks, paste, 
rubber stamps, stamp pads, typewriter ribbons, rulers, shorthand books, etc. 

Account 2110 — Accident Expense 

Charge with ambulance service, nurses and doctors' service, hospital care, 
medicine required and all other expenses incurred on account of accidents to 
employees. 

Account 2111 — General Traveling 

Charge with amounts expended in traveling on company business when not 
chargeable to some other account, order or contract. 

Selling Expense — Account 2200 



» 



MANUFACTURING COSTS 247 

Account 2201 — Estimating 

Charge with expense of the Estimating Department. 

Account 2202 — Engineering Work Previous to Sale 
Charge with account 2309. 

Account 2203 — ^Advertising 

Charge with periodical and circular advertising, photographing, cuts, etc. 

Account 2204 — Salesman's Salaries 

Account 2205 — Salesman's Expenses 

Account 2206 — Home-Office Selling Expense 

Charge with expense of a miscellaneous nature that are chargeable to the 
selling branch of the business. 

Account 2207 — Branch Office Expense 

Charge with expenses chargeable against branch offices. 

Sales and Stock Orders 
Sales Orders 

Each sales or customer's order is to be numbered; the following numbers to be 
assigned to the Machine Shop and Boiler Shop: 

Machine Shop 40,000-49,999 

Boiler Shop 50,000-59,999 

The first figure of each group to be used as identifying the department which is 
to receive credit for the order. 

Stock Orders 

Stock orders will be of two kinds: 

a. For finished product such as engines, boilers, tanks, etc. 
h. For stock parts whether rough or finished and made for the warehouse or 
"stores." 

Finished Product Stock Orders 

Machine Shop and Boiler Shop to have "Finished Product" accounts which will 
be charged upon completion with finished product orders. 

All stock orders for finished product are to bear numbers which correspond to 
the departments that are to be credited with sales from finished product. 

Warehouse or "Stores" Orders 

All orders for Warehouse Stock to bear numbers: — 
30,000 to 39,999 

The first figure showing this class of orders to be different from Machine or Boiler 
Shop Orders. 

How Orders for Warehouse Stock Are to be Controlled 

No department to manufacture stock parts without orders; requisitions for this 
class of materials to come from the Warehouse, the Order Clerk or Engineering 
Department to decide on what is to be carried. 



248 



INTRODUCING EFFICIENCY PRINCIPLES 



o 
o 


STORES REPLENISHMENT 


THE FOLLOWING ITEMS ARE WANTED FOR STORES 


KfcJ'D 


PATTthN NO. 


PIECE NO. 


DRAWING NO. 


MAT'L. 


DESCRIPTION 


Ot^'T. 


WHEN 
WANTED 


HOW WANTED 
~r T FM~[ W, 


ORUER NO. 
































































































































































































































































































REMARKS: 


DATE STORE KEEPER 


F.- CASTINGS FROM FOUNDRY ONLY F.M .- CASTINGS AND MACHI NE WCRK M.- MACHINE WORK ONLY 



The Engineering Magazine 



Fig. 99. Stores Replenishment Form 



How Warehouse is to be Notified Regarding What to Carry 

Order Clerk or Engineering Department to use the form given in Fig. 99, '* Stores 
Replenishment," when it is desired to create stock; listing information under proper 
headings; stating under "Remarks" that the material is to be carried as stock, and 
whether the material is to be carried as rough or finished, giving any other informa- 
tion that may be necessary. 

The maximum and minimum quantities are to be given for guidance in reordering 
when stock is low. 

After slips are made out they are to be sent to the Warehouse. 

Warehouse Procedure 

Warehouse upon receipt of "Stores Replenishment" slips from Order Clerk or 
Engineering Department is to open accounts for the material specified in the Stores 
Ledger, placing the necessary information under "Ordered," after which the slips 
are to be sent to the Cost Department. 

Handling Stock Orders for Finished Product 

If an order is entered for a number of units, as for instance, an order for three 
engines, the order is to be given a number beginning with 4 and each one of the units 
to be made is to be given an engine or unit number. 

The stock-order number is to include the machining of the parts by item num- 
bers and the assembly of the units by engine or unit numbers. If, for instance, the 
stock order for the three engines was 41,250, and the engine numbers 901-902-903, 
the time would be accounted as follows: 

Machining— 41250— Item No. 



MANUFACTURING COSTS 249 

Assembly — 41250 — 901-902-903, depending upon which engine was being assem- 
bled. 

Applying Stock Orders to Sales Orders 

If one of the units being made on a stock order is sold, a sales order is to be made 
out by the order clerk, on which is to show the number of the stock order on which the 
unit is being made. 

If, when the Engineering Department gets the sales order, it is found that a number 
of special parts are necessary, which do not replace regular parts made for the stock 
order, a list of material is to be made out for the sales order, hut instead of listing 
every item entering into the construction of the machine, the list is to read: 

Take from Stock Order No. , 

and under this wording is to be entered the special parts that are necessary. 

The sales-order number is to cover the machining of the special parts, but their 
assembly is to be charged to the Stock Order and Engine Numbers. 

Stock Orders to show to which sales orders a unit has been applied. 

Special Parts on Sales Orders Replacing Regular Parts Made on the Stock 

Order 

If the Engineering Department should find in checking over the stock order 
that some of the parts do not come up to specification, the sales order list is to read : 

Take from Stock Order No. , with exception of replacements listed below, 

and when the special parts replacing the regular parts are listed, they are to be pre- 
fixed by the wording: 

Replacing item sheet . 

Handling Parts Replaced 

It shall be the duty of the shop foreman to see to it that the regular stock parts 
replaced by special parts, are finished up and returned to the warehouse, accompanied 
by "Material Returned" cards. Fig. 101, so that the stock order can be credited 
for the parts not needed. 

Costing Sales — Stock Orders 

When sales orders are completed, which take units from the stock orders, the 
Cost Department is to transfer from the stock order the proper machining costs 
and the cost of assembly by engine or unit number, to which is to be added the 
machining of the special parts. 

Stock orders to be credited with the parts that have been returned to warehouse 
because of replacements. 

Production and Sales Accounting 
Sales Accounts 

The following will be the principal Sales Accounts: 
(a) Machine-Shop Accounts: 

Sales. 

Sales. 

Sales. 

Sales. 

Sales. 



250 INTRODUCING EFFICIENCY PRINCIPLES 

(h) Boiler-Shop Accounts: 

Sales. 

Sales. 

Sales. 

Sales. 

Sales. 

Sales. 

Manufacturing Accounts 

The following will be the accounts to which will be charged the labor and material 
entering into the production of whatever is credited in the form of a sale: 

Foundry Manufacturing Account. 

Boiler-Shop Manufacturing Account. 

Machine-Shop Manufacturing Account, 

and in addition there will bean account *' Warehouse Manufacturing Account," 
which will be charged with the labor on finished parts by smithy, machine or boiler 
shop, and the material drawn from warehouse. 

Income Accounts 

There will be three income control accounts: 

Foundry, Income Account. 

Machine-Shop Income Account. 

Boiler-Shop Income Account. 

Inventory Accounts 

There will be four inventory accounts in addition to the Stores and Manufacturing 
Accounts, as follows: 

Machine-Shop Finished Product Account. 

Boiler-Shop Finished Product Account. 

Finished Parts Account. 

Salvage Account. 

Kinds of Manufacturing 

Manufacturing will be of three kinds: 

a. For stock orders for: 

Finished parts. 
Finished units. 

b. For sales orders. 

c. For new construction or permanent improvement orders. 

Charges to the Manufacturing Accounts 
All charges will come from three sources: 



i: 



MANUFACTURING COSTS 251 

Labor 

Material 

Burden or overhead expense 
Journalizing of labor and material charges to be done by Cost Department. 
Journalizing of burden charges to be done by Accounting Department from data 
furnished by Cost Department. 

Credits to Manufacturing Accounts 
All credits will come from three sources: 
Completed orders for month 
Returned material 
Rejected material 
The form shown in Fig. 100, "Report of Finished Orders," will constitute the 
authority for making journal entries, while "Material Returned" card, Fig. 101, 
and "Rejection Card" (see Fig. 70, Chapter XVII) will be used when journalizing 
returns and rejections. - 

Journal entries to be made by Cost Department. 

Making up the "Labor" Charges to Manufacturing Accounts 

There will be a "Report" sheet, Fig. 102, each month for each of the follow- 
ing departments: 

Machine Shop 

Boiler Shop 

Smithy 

Pattern Shop 

Carpenter Shop 

Yard 

Gas-Engine Department 

Structural Department 

Each sheet to have the following written in the blank headings: 

First column Machine Shop. 

Second " Boiler Shop. 

Third " Warehouse. 

Sixth " Expense. 

The service cards from each of the various departments, which should cover the 
time of all the employees in the departments, are to be taken by the Cost Depart- 
ment, checked against payroll time, and after being posted to the proper orders or 
accounts, re-sorted according to the department manufacturing accounts. Those which 
do not affect a manufacturing account are to be placed in a pile by themselves. 

The labor in hours and amount for each of the four divisions will then be com- 
puted and inserted opposite the date under the proper heading; the total for the 
day to be placed in the "Totals" column. 

At the end of the month, the various columns (hours and amount) on the de- 
partment sheets, are to be totaled and the percentages which the Machine Shop, 
Boiler Shop and Warehouse hours bear to the total department hours, are to be com- 
puted and inserted opposite "Department Hours to Total Hours." 



252 



INTRODUCING EFFICIENCY PRINCIPLES 



REPORT OF FINISHED ORDERS 
MONTH OF DEPARTMENT SHEET NO 




CHARGE "finished PARTS" A/fc-" FINISHED PRODUCT " a/c WITH TOTAL OF C0LUMN"E" 
CREDIT "MANUFACTURING" a/c WITH TOTALS OF c'oUIMNS A. B. C. AND D, 




.../-^N 


DATE 
FINISHED 


ORDER 
NUMBER 


LAEOR 


MATERIAL 


BURDEN 


TOTAL 
COST 




HOURS 


AMOUNT 


^ ) 




























































V 








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TOTALS 




































































1 
1 


A 


B 


c 


D 


E 





The^nyineering Magazine 



Fig. 100. Report of Finished Orders 



» » 



MANUFACTURING COSTS 



253 



MATERIAL RETURNED 



CREDIT BECAUSE OF MATERIAL RETURNED 



ORDER NO. 



DEP'T. 



QUANTITY 



DESCRIPTION 



PRICE 



VALUE 



DATE 
RET'D 



RET'D 
BY 



REC'D 
BY 



The Engineering Maga3ins 



Fig. loi. Material Returned Card 



Making up Material Charges to Manufacturing Accounts 

There mil be a "Report" sheet, Fig. 102, each month for the following classifica- 
tion of material: 

Stores Material 
Finished Parts 
Requisition for Material 
"Material Delivered" cards, Fig. 103, and "Rejection Cards" are to be sorted 
each day according to the proper manufacturing accounts; all requisitions covering 
expense materials to be placed in a pile by themselves. 

The value of the biaterial is to be computed daily and inserted opposite the date 

under the proper heading; the total for the day to be placed in the "Totals" column. 

Care will be necessary in sorting requisitions in order that the distinction between 

Stores and Finished Parts (parts manufactured by us for Warehouse stock) may be 

considered. 

Making up Credits to Manufacturing Accounts 

As orders are finished, whether shipped or not shipped, they are to be costed 
and entered on "Report of Finished Orders." 

There will be three reports covering: 



254 



INTRODUCING EFFICIENCY PRINCIPLES 



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MANUFACTURING COSTS 



255 



MATERIAL DELIVERED. 


WHEN DATED AND SIGNED BY FOREMAN, THIS CARD BECOMES A REQUISITION FOR 
THE MATERIAL SPECIFIED; IT BECOMES A "MATERIAL DELIVERED" CARD WHEN 
DATED AND SIGNED UPON DELIVERY OF MATERIAL AFTER WHICH IT IS TO BE ' 
SENT TO COST OFFICE SHOWING WEIGHTS. (SEE reverse side.) 


ORDER NO. 


FOR DEPT. 


BY DEPT. 


li. . 
O -1 

-1 


SHEET 




- 


GROUP 


DATE ISSUED 




ITEM 


REQ'R'D 


PART NAME DESCRIPTION or PIECES NO. 

DRAWING No. 


MATL. 


FOR 


DATE WANTED 


DATE COMPLETED 


DELIVER MATERIAL TO — 


FOREMAN 


DELIVERED TO 


DATE 


NAME 


DATE 


NAME 


1 



Fig. 103. Material Delivered Card 



TJte Engineering MagazvM 



Machine-Shop Finished Product 
Boiler-Shop Finished Product 
Warehouse Finished Parts 
At the end of the month, the various columns are to be added and journalized 
according to the instructions given at the top of the form. 



Foundry Manufacturing Account 
(a) Month's Production — 

Charge Foundry Manufacturing Account with month's production at 
cost to produce. 

Credit Labor, Stores and Burden Accounts with amounts making up 
the cost. 
(6) Sale of Month's Production: 

Charge Stores Account with sale of month's production to Warehouse at 
prices allowed the foundry. 

Credit Foundry Manufacturing Account with sales price of month's 
production, 
(c) Foundry Profit: 

Charge Foundry Manufacturing Account, credit Foundry Income 
Account with the difference between charge and credit entries to Foundry 
Manufacturing Account. 



256 INTRODUCING EFFICIENCY PRINCIPLES 

(d) Foundry Loss : 

Charge Foundry Income Account, credit Foundry Manufacturing 
Account with the difference between charge and credit entries to Foundry 
Manufacturing Account. 

Machine Shop Manufacturing Account 
(o) Month's Production: 

1. Charge account with labor in: 

Machine Shop 
Boiler Shop 
Smithy 
Pattern Shop 
Carpenter Shop 
Yard 

Engineering Department 
Field 
when such labor is applied on Machine-Shop orders. 

2. Charge with all material drawn from Stores for Machine-Shop orders. 

3. Charge with proportion of Machine-Shop, Boiler-Shop, Smithy and 
Field burden applicable to Machine-Shop orders. 

Credit Labor, Stores and Burden Accounts with the amounts making 
up the cost. 
(6) For material returned by shops after having been charged to Manufacturing 
Account. 

Charge Stores Account. 

Credit Machine-Shop Manufacturing Account. 

(c) For rejections of material: 

Charge proper Error Account. 

Credit Machine-Shop Manufacturing Account. 

(d) For Completed Work: 

Charge Machine-Shop Finished Product Account. 
Credit Machine-Shop Manufacturing Account. 

Boiler Shop Manufacturing Account 

Procedure same as for Machine-Shop Manufacturing Account 

Warehouse Manufacturing Account 

For Warehouse Manufacturing Account, the procedure is same as for the 
Machine Shop Manufacturing Account, with the exception of completed work 
which for the warehouse work is to be handled: 

Charge Stores Finished Parts Account. 

Credit Warehouse Manufacturing Account. 

Finished Products Accounts (Boiler Shop and Machine Shop), 
(a) Upon completion of Boiler and Machine-Shop orders : 
Charge Department Finished Product Account. 
Credit Department Manufacturing Account. 



i 



MANUFACTURING COSTS 257 

(b) When shipments are made and invoiced: 
Charge proper sales account with cost. 
Credit Department Finished Product Account. 

Finished Parts Accounts 

(a) Upon completion of warehouse orders : 

Charge Finished Parts Account. • 

Credit Warehouse Manufacturing Account. 

(b) When finished parts are issued to shops on orders : 

Charge Department Manufacturing Account. 
Credit Finished Parts Account. 

(c) When finished parts are sold: 

Charge Department Finished Product Account. 
Credit Finished Parts Account. 

Sales Accounts 

(a) Boiler Shop 

1. For sales at sales prices: 

Charge Customer. 
Credit: 

Sales under its proper sub-account. 

2. For Sales at the Cost of the Sales : 

Charge the above sales accounts with the cost of the sales. 
Credit Boiler-Shop Finished Product Account. 

(b) Machine Shop 

1. For sales at sales prices: 

Charge Customer. 
Credit : 

Sales under its proper sub-account. 

2. For sales at the cost of the sales : 

Charge the above sales accounts with the cost of the sales. 
Credit Machine-Shop Finished Product Account. 

Foundry Income Account 
For Profits : 

Charge Foundry Manufacturing Account. 

Credit Foundry Income Account. 
For Losses: 

Charge Foundry Income Account. 

Credit Foundry Manufacturing Account. 

Machine-Shop Income Account- 
For Profits: 

Charge the various Machine-Shop Sales Accounts with monthly income 
from sales. 

Credit Machine-Shop Income Account with income from various sales 
accounts. 



258 INTRODUCING EFFICIENCY PRINCIPLES 

For Losses: 

Charge Machine-Shop Income Account. 
Credit various Machine-Shop Sales Accounts. 

Boiler-Shop Income Account 

Same procedure as for Machine-Shop Income Account. 

Salvage Account 

For recovery of materials : « 

All material recovered, with the exception of daily foundry recovery, to be 
charged at market prices to the above account; the proper department to receive 
credit for the material turned over to the Salvage Account. 
For sale of salvage: 

Charge Purchaser. 

Credit Salvage Account. 

For Materials Returned by Customer and Put into Finished Product 
For price of material returned: 
Charge proper Sales Account. 
Credit Customer. 

For cost of material returned: i 

Charge Department Finished Product Account. 
Credit proper Sales Account. 
On the basis of the accounting as above described, it will be possible to draw up a 
monthly trading or income statement, showing not only what each department has 
made or lost, but the profits or losses on the various lines manufactured by the sep- 
arate departments. It should also be remembered that the value of cost data lies 
in their careful analysis, and this fact should not be overlooked. 






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